Lease Illustration #3
Calculations: A (or periodic rental)
Cost of asset $90,000
less PV of BPO $ 3,757 n = 3, i = 10%
Amount to be recovered
by lessor through
rental payments $86,243
PVMLP = A(PVIF,annuity) n = 3, i = 10%
$86,243 = A ( 2.48685)
A = $34,680