Forums Homework Help Compute the amount of the annual lease payment and the gross amount due under the lease

Viewing 1 post (of 1 total)
  • Author
    Posts
  • #8417
    ahwriter
    Participant

    MBI Company’s largest computer has a cash selling price of $200,000. A customer wishes to buy the computer on a lease purchase plan over five years, with the first payment to be made at the inception of the lease. Interest is at 10%.

    Required:

    (a.) Compute the amount of the annual lease payment and the gross amount due under the lease.

    (b.) Compute the amount of interest income earned by MBI for the fourth year of the lease.

Viewing 1 post (of 1 total)
  • You must be logged in to reply to this topic.