Paul secured a lease on a machine by paying $1,700 as a down payment and then $500 at the beginning of every month for 6 years. The lease rate was 3.50% compounded monthly. a. What was the principal amount of the lease?
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- Owens Company leased equipment for 4 years at 50,000 a year with an option to renew the lease for 6 years at 2,000 per month or to purchase the equipment for 25,000 (a price considerably less than the expected fair value) after the initial lease term of 4 years. Why would this lease qualify as a finance lease?Veronica secured a lease on a machine by paying $1,800 as a down payment and then $750 at the beginning of every month for 6 years. The lease rate was 3.75% compounded monthly. What was the principal amount of the lease? What was the cost of the machine? What was the amount of interest paid over the term of the lease?For his business, Nicholas leased equipment valued at $23 000. The terms of the lease required payments of $1800 every month. If the first payment is due nine months after the lease was signed and interest is 11% compounded monthly, what is the term of the lease?
- Crystal secured a lease on a machine by paying $1,800 as a down payment and then $275 at the beginning of every month for 4 years. Assume that the cost of financing is 3.30% compounded monthly. a. What was the principal amount of the loan? b. What was the cost of the machine? c. What was the amount of interest paid over the term?For his business, Nicholas leased equipment valued at $19,000. The terms of the lease required payments of $1550 every month. If the first payment is due eighteen months after the lease was signed and interest is 5% compounded semi-annually, what is the term of the lease? State your answer in years and months (from 0 to 11 months).Luis leased equipment worth $55,000 for 8 years. If the lease rate is 5.25% compounded monthly, calculate the size of the lease payment that is required to be made at the beginning of each month.
- Bob just signed a lease on a rental agrelement. The current rent is $1,580 per month, and the estimates a 5% increase each year. Use his estimate to predict the sum of the next four years worth of monthly rental expenses.JJJ is renting a storefront. The lease is for 6 years, and the monthly rent is $3,000 until the lease ends. The first payment is due today. Calculate the present value of the entire stream of payments if the APR is 8%, continuously compounded.a contract requires lease payments of $700 at the beginning of every month for 5 years. a. What is the present value of the contract if the lease rate is 4.77% compounded annually? b. What is the present value of the contract if the lease rate is 4.77% compounded daily? Andrew paid off his student loan in 4 years by making payments of $550 at the beginning of every month. The interest rate on his loan was 6.20% compounded monthly. a. Calculate the size of the original loan. b. Calculate the amount of interest paid on the loan.
- You are leasing some furniture for your apartment. The monthly lease is for $395/month, payable at the beginning of the month. If your personal cost of capital is a 3% nominal annual rate, what is the present value of a one-year lease?A car dealer is willing to lease you a car for $319 a month for 60 months. Payments are due on the first day of each month starting with the day you sign the lease contract. If your cost of money is 4.9 percent, compounded monthly, what is the current value of the lease?Katherine leased equipment worth $70,000 for 8 years. If the cost of borrowing is 7.86% compounded quarterly, calculate the size of the lease payment that is required to be made at the beginning of each quarter.
