Chunga and Company trade in golf clubs. They sell the clubs either through cash or through a lease facility with their clients. You have recently started playing golf and want to lease a set of golf clubs from Chunga and Company. The lease contract is in the form of 24 equal monthly payments at a 10.4 percent stated annual interest rate, compounded monthly. Because the clubs cost K3,500 retail, Chainama wants the present value of the lease payments to equal K3,500. Suppose that your first payment is due immediately. What will your monthly lease payments be?
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Chunga and Company trade in golf clubs. They sell the clubs either through cash or through a lease facility with their clients. You have recently started playing golf and want to lease a set of golf clubs from Chunga and Company. The lease contract is in the form of 24 equal monthly payments at a 10.4 percent stated annual interest rate, compounded monthly. Because the clubs cost K3,500 retail, Chainama wants the present value of the lease payments to equal K3,500. Suppose that your first payment is due immediately. What will your monthly lease payments be?
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- Chris Svenson is trying to decide whether to lease or purchase a new car costing $18,000. If he leases, he’ll have to pay a $600 security deposit and monthly payments of $425 over the 36-month term of the closed-end lease. On the other hand, if he buys the car then he’ll have to make a $2,400 down payment and will finance the balance with a 36-month loan requiring monthly payments of $515; he’ll also have to pay a 6 percent sales tax ($1,080) on the purchase price, and he expects the car to have a residual value of $6,500 at the end of 3 years. Chris can earn 4 percent interest on his savings. Use the automobile lease versus purchase analysis form to find the total cost of both the lease and the purchase and then recommend the best strategy for Chris.Shamma approaches Al-Meezan Islamic Bank to lease a car using an Ijara waIqtina contract ending in the ownership transferring to Shamma. The price of thecar is AED100,000. The lease period is 4 years, during which 40% of the value ofthe asset will be used up. The bank wants a profit rate of 7% in the lease contract.Calculate the monthly lease payment for the customer.Multi Line Text.Kuehner estimates that it can lease Parker Road Plaza for $18.50 per square foot (GLA) base rent with a 3 percent overage on gross sales in excess of $200 per square foot (GLA). The company expects rents to increase by 5 percent per year during the lease period and tenant reimbursements to run $8 per square foot (GLA) and to increase at the same rate as rents. Kuehner expects to have the shopping center 70 percent leased during the first year of operation After that, vacancies should average about 5 percent per year. The vacancy losses should be cal-culated on the entire gross potential income, which includes minimum rents, percentage rents and tenant reimbursements. Sales, which are expected to average $210 per square foot (GLA) for the first year of operation, should grow at 6 percent per year. The operating expenses are expected to average $14 per square foot of GLA for the first year and will increase at the same rate as the rents. Kuehner will collect an additional 5 percent of…
- Bisa is leasing a vehicle worth $20,000, with a down payment of $1000 and equal payments at the beginning of every two weeks for three years. What is the size of each lease payment if the cost of borrowing is 6.75% compounded monthly and the residual value is $10,500? The Textbook answer says $147.34........You want to lease a set of golf clubs from Pings Ltd. The lease contract is in the form of 24 equal monthly payments at an APR of 8.4 percent compounded monthly. Because the clubs cost $2,500 retail, the company wants the value today of the lease payments to equal $2,500. Suppose that your first payment is due immediately. What will your monthly lease payments be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Ben Halls is trying to decide whether to lease or purchase a new car costing $18,000. If he leases, he’ll have to pay a $600 security deposit and monthly payments of $450 over the 36-month term of the closed-end lease. Ben could earn 1% on the amount of any down payment or security deposit. On the other hand, if he buys the car then he’ll have to make a $2,400 down payment and will finance the balance with a 36-month loan with a 4% interest rate; he’ll also have to pay a 6 percent sales tax ($1,080) on the purchase price, and he expects the car to have a residual value of $6,500 at the end of 3 years. Ben can earn 4 percent interest on his savings
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- Moonlight Industries just signed a sales contract with a new customer. JK will receive annual payments in the amount of $50,000, $96,000, $123,000, and $138,000 at the end of Years 1 to 4, respectively. What is this contract worth at the end of Year 4 if the firm earns 3.75 percent on its savings? Can the excel and calculator solution be provided?Fame purchases and then leases small aircraft to intereste parties. The Co is currently determing the required rental for a small aircraft that cost them $860,000 if the lease is for 20 years and annual lease payments are required to be made at the end of each year What will be the annual rental if Fame wants to earn a retun of 10% $47,300 is my answer is that correct? Thank you BrendaPlease Show each and every Calculation: we have leased a fleet of 15 motorbikes to a customer - Xander Plc over a three year term. There was an initial upfront payment of £100,000. Annual lease payments are receivable in arrears on 30 September each year. The normal selling price of the whole fleet of bikes is £1.8 million. After the 3 year lease term is complete, the customer has the option to pay a fixed amount and take legal ownership of the fleet but until then, JJ Victory retains legal title. We have received the upfront payment of £100,000 and the first of the lease payments on 30 September 2021. These amounts have both been recognised as revenue on the basis that this is effectively lease income. Is this correct? Explain with calculations