(12C) Advance Payments in a Lease

[Eddie W. Shore]

The program calculates the payment where you pay number of payments in advance.

Formula:

PMT = (-PV – FV*(SPPV(I%/12:N))) ÷ (UPSV(I%/12:N-ADV)+ADV)

Where:
SPPV: present value of $1, where FV is equal to 1
USPV: present value of $1, where PMT is equal to 1

Input:

Number of payments, [ STO ] [ 0 ]
Number of payments made in advance, [ STO ] [ 1 ]
Periodic Rate, [STO] [ 2 ]
Price of the Lease, [STO] [ 3 ]
Salvage Value, [ STO ] [ 4 ]

Calculate lease payment by pressing [R/S].

Code:


STEP    CODE    KEY
01    42, 34    Clear FIN  ([ f ] [x<>y])
02    1    1
03    16    CHS
04    15    FV
05    45, 2    RCL 2
06    12    i
07    45, 0    RCL 0
08    11    n
09    13    PV
10    45, 4    RCL 4
11    20    *
12    16    CHS
13    45, 3    RCL 3
14    30    -
15    45, 11    RCL n
16    45, 1    RCL 1
17    30    -
18    11    n
19    45, 15    RCL FV
20    14    PMT
21    0    0
22    15    FV
23    13    PV
24    45, 1    RCL 1
25    40    +
26    10    ÷
27    43, 33, 00    GTO 00

Example:

A machine with a cost of $40,000.00 is leased for 48 months. Two advanced payments are required. Interest rate is 10% (monthly periodic rate is 10%/12). The residual value is estimated to be $15,000.

Input:

48 [STO] [ 0 ] \\ term
2 [STO] [ 1 ] \\ 2 advanced payments
10 [ENTER] 12 [ ÷ ] [STO] [ 2 ] \\ interest rate
40000 [STO] [ 3 ] \\ cost
15000 [STO] [ 4 ] \\ salvage value

Result:

[R/S] -1249.30 (Each payment is $1,249.30. Two advanced payments are $2,498.60).

Source: HP 17bII+ Financial Calculator User’s Guide. Hewlett Packard. Edition 3: 2007