HP 10B - Manual (Page 65)

50BxP/YRI 600.00
0 (FV] 0.00
Ш) 3.328.68
Stores number of
withdrawals.
Stores balance of account
after 50 years.
Calculates amount that
you can withdraw at the
beginning of each month.
Lease Calculations
A lease is a loan of valuable properly (Икс real estate, automobiles, or
equipment) for a specific amount of lime, in exchange for regular pay*
mcnls. Some leases arc written as purchase agreements, with an option to
buy at the end of the lca.se (sometimes for as little as Sl.OO). The defined
future value (Fl^ of the property at the end of a lease is sometimes called
the “residual value” or “buy out value.'
19
All five TVM application keys can be used in lease calculations. There arc
two common lease calculations.
■ Finding the lease payment necessary to achieve a specified yield.
■ Finding the present value (capitalized value) of a lease.
The first payment on a lease usually occurs at the beginning of the first
period. Thus, most lca.se calculations use Begin mode.
Example: Calculating a Lease Payment.
A customer wishes to
lease a $13,500 car for three years. The lease includes an option to buy
the car for $7,500 at the end of the lease. The first monthly payment is
due the day the customer drives the car off the lot. If you want to yield
14% annually, compounded monthly, what will the payments be? Calcu­
late the payments from your (the dealer’s) point of view.
62 5: Tim« Vatu« of 1У1опеу Calculations