Could someone please help...
Equip. is leased for 5,000 per year for 3 years, with the first pmt due at the end of the first year. The interest rate implicit in the lease is 10% and the lessee's incremental borrowing rate is 11%. The lease terms include a guaranteed residual value pmt of 3,000 at end of lease expiration.
Assets Under Capital Lease = 14,688 as well as Capital lease obligation.
I have an HP12C...I know this is an ordinary annuity due, but can't come up with the answer!!!
It should be PV of 5,000/year annuity for 3 yrs + PV of 3,000 in 3 years @ 10%
Does anyone know the keystrokes for finding this?????
Equip. is leased for 5,000 per year for 3 years, with the first pmt due at the end of the first year. The interest rate implicit in the lease is 10% and the lessee's incremental borrowing rate is 11%. The lease terms include a guaranteed residual value pmt of 3,000 at end of lease expiration.
Assets Under Capital Lease = 14,688 as well as Capital lease obligation.
I have an HP12C...I know this is an ordinary annuity due, but can't come up with the answer!!!
It should be PV of 5,000/year annuity for 3 yrs + PV of 3,000 in 3 years @ 10%
Does anyone know the keystrokes for finding this?????