1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
hodyreva [135]
2 years ago
14

On January 1, Smith Industries leased equipment to a customer for a four-year period, at which time possession of the leased ass

et will revert back to Smith. The equipment cost Smith $425,000 and has an expected useful life of six years. Its normal sales price is $425,000. The residual value after four years is $100,000. Lease payments are due on December 31 of each year, beginning with the first payment at the end of the first year. The interest rate is 8%. Calculate the amount of the annual lease payments. (Round your answer to the nearest whole dollar.)
Business
1 answer:
KiRa [710]2 years ago
4 0

Answer:

The amount of the annual lease payments is $98,124.

Explanation:

This can be calculated using the formula for calculating loan amortization as follows:

P = (A * (r * (1 + r)^n)) / (((1+r)^n) - 1) .................................... (1)

Where,

P = Annual lease payments = ?

A = Amount to be recovered through periodic lease payments = Equipment cost - Residual value = $425,000 - $100,000 = $325,000

r = interest rate = 8%, or 0.08

n = Number of years of lease term  = 4

Substituting all the figures into equation (1), we have:

P = ($325,000 * (0.08 * (1 + 0.08)^4)) / (((1+0.08)^4) - 1)

P = $98,124.2614475627

Rounding to the nearest whole dollar as required, we have:

P = $98,124

Therefore, the amount of the annual lease payments is $98,124.

You might be interested in
Albert Inc. has both common and preferred stock outstanding. Which should be listed first in the stockholders' equity section of
Talja [164]

Answer: Preferred Stock

3 0
2 years ago
Zoua needs 1.3 pounds of apples to make 1 pint of applesauce. She has 14.6 pounds of apples. How many more pounds of apples does
Daniel [21]
She needs 6.2 more pounds to reach 20.8, which is how much she needs for 16 pints of applesauce.
5 0
3 years ago
Read 2 more answers
An appraiser completes an appraisal for a homeowner in preparation for obtaining a loan. The appraiser provides a letter report
Oxana [17]

The situation here is that the appraiser is:

  • Taking a percentage for his services from the appraisal

Based on the given question, we can see than when an appraisal is made, the appraisal which is actually a written report that makes an estimate of the present value of a piece of property.

With this in mind, we can see that the appraiser preferred to take his payment from the percentage value of the <em>value of the property </em>which he appraised. This method is sure to give the appraiser more money than he would have made, especially if the value of the property was quite high.

Read more about appraisal reports here:

brainly.com/question/25088996

3 0
2 years ago
A will is the final declaration of how a person desires to have her or his property disposed of after death and must follow exac
Aleksandr-060686 [28]

Answer:

The above statement is<u> true</u>.

Explanation:

As said in above statement , A will is the final declaration of how  person desires to have her or his property disposed of after death and must follow exactly the requirements of state law to be effective. A will is good , as it express your feelings , that to whom you want to give your property after your death . It is always provided to that person you choose.

It protect your children from become homeless after your death. It also protect your property from being contested. A will is only valid if it is having number of years after the persons death.

A will should not include future plans, gifts and request , life insurance etc.  

8 0
3 years ago
A person who is skilled at performing calculations, has math skills for advanced analysis, and has organizational skills would b
ale4655 [162]

Someone with the skills mentioned above would be great as (A) a credit analyst.

A credit analyst is <u>a person working in finances whose main job is to assess the creditworthiness of companies, individuals, and securities. </u>

Credit analysts are usually employed by public or private financial institutions (both banking or non-banking).

3 0
2 years ago
Read 2 more answers
Other questions:
  • If the original price of an item was $30.00 and joan only paid $24.00 for it, what percentage discount did joan receive on her p
    15·2 answers
  • The difference between a merger and an acquisition is
    14·1 answer
  • Explain just in time(JIT) approach?
    6·1 answer
  • In computing depreciation, salvage value isa. the fair market value of a plant asset on the date of acquisition.b. subtracted fr
    13·1 answer
  • Van pays the following medical expenses this year:
    13·1 answer
  • Rachel is the managing director of LivviPro Inc., a life insurance agency. She believes in using various disciplines such as soc
    12·1 answer
  • Petra's Programming competes on cost with WonderWeb in the web design industry. Both firms operate on a 90 percent learning curv
    13·1 answer
  • Alabama and Mississippi each have 9 units of labor. They can use their units of labor for the production of chickens and cotton.
    15·1 answer
  • Which of the following best illustrates the spirit of stewardship? Lobbying government officials to increase the drilling for of
    12·2 answers
  • Instead of investing a lump of sum of $25000,Brittany Royer decides to svae the money in a vault for 2years. Assuming the inflat
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!