Answer:
The answer is "Option a"
Explanation:
This payment is equivalent to the regular rent formally specified by the same contract that grants the member the rights for a specified time. It used both the nominal lending rate and the lessor's conditional value, which provides the lower implied rate, and wrong choices can be described as follows:
- In option b, It is wrong because in this we assume the implicit rate is lessee.
- Option c and Option d both were wrong because It doesn't use the Iterative credit rate.
