Answer:
$143,750
Explanation:
We have to first calculate the present value of the bargain purchase option:
PV = $200,000 / (1 + 6%)⁵ = $149,451.63
net lease amount = $790,000 - $149,452 = $640,548
PVIF Annuity due, 6%, 5 payments = 4.546
Annual payment = $640,548 / 4.456 = $143,750
Answer:
$3,791
Explanation:
Given that
Expected amount received = $1,000
Number of years = 10 years
Rate of interest = 5
So, the present value of this annuity would be
= Expected amount received × PVIFA factor at 5 years at 10%
= $1,000 × 3.7908
= $3,791
Refer to the PVIFA table
Simply we multiplied the expected amount received by the PVIFA factor
There are two related questions for this problem. Check the attached file for the answers.
Answer:
Express Warranty
Explanation:
Express Warranty -
It is a type of agreement by the seller in order to provide the replacement or repair the product , any service or component ,which is faulty , with in a given period of time frame , is known as express warranty .
The consumer gets the guarantee about the goods or service and feel secure about the purchase .
Hence , from the question , the term according to the given statement of the question is express warranty .
