HP 10bII - Lease Calculations

Keys: Display: Description:
Фев 12.00 Sets payments per year.
СОСО) Э -400,000.00 Stores your nest egg as
an outgoing deposit.
@@®
7.00
Stores
annual
interest
rate
you
expect
to
earn.
OO 600.00 Stores number of
withdrawals.
Om 0.00 Stores balance of
account after 50 years.
Фм)
2,392.80
Calculates
amount
that
you
can
withdraw
at
the
beginning
of each
month.
Lease Calculations
A lease is a loan of valuable property (like real estate, automobiles, or
equipment) for a specific amount of time, in exchange for regular
payments. Some leases are written as purchase agreements, with an
option to buy at the end of the lease (sometimes for as little as $1.00).
"The defined future value (FV) of the property at the end of a lease is
sometimes called the “residual value” or “buy out value.”
All five TVM application keys can be used in lease calculations. There are
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 lease 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 10%
annually, compounded monthly, what will the payments be? Calculate the
payments from your (the dealer’s) point of view.
5: Time Value of Money Calculations 63