(12C) Advance Payments in a Lease
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08-07-2016, 07:54 PM
Post: #1
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(12C) Advance Payments in a Lease
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:
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 |
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