Keys: display: description: 12а[р7щ, Example: lease with advance payments – HP 10B User Manual
Page 66
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РМТ - ?
ж Ж
I/YR - 14%
N - 36
P/YR - 12
PV «■ -13,500.00
Begin Mode
35
FV = 7,500.00
Ж
36
Money received
by lessor is
positive.
Money paid out
by lessor is
negative.
Set to Begin mode.
if annunciator is not displayed.
Keys:
Display:
Description:
12а[р7щ
12.00
Sets payments per year.
14 [ITYRI
14.00
Stores desired annual
yield.
13500 Ea (pg
-13,500.00
Stores lease price.
7500
7,500.00
Stores residual (buy out
value).
36 (
n
]
36.00
Stores length of lease, in
month.s.
[
р
Ш1
289.19
Calculates monthly lease
payment.
Notice that even if the customer chooses not to buy (he car, the lessor still
includes a cash flow coming in at the end of the lease equal to the residual
value of the car. Whether the customer buys the car or it is sold on the
open market, the lessor expects to recover $7,500.
Example: Lease With Advance Payments.
Your company, Quick-
Kit Pole Barns, plans to lease a forklift for the warehouse. The lease is
written for a term of 4 years with monthly payments of $2,400. Payments
arc due at the beginning of the month with the first and last payments due
at the onset of the lease. You have an option to buy the forklift for $15,000
at the end of the leasing period.
5: Timo Value of Money CalculaUont S3