74
5: Time Value of Money
Leasing Calculations
Two common leasing calculations are 1) finding the lease payment
necessary to achieve a specified yield, and 2) finding the present value
(capitalized value) of a lease. Leasing calculations typically use
“advance payments”. For the calculator, this means Begin mode
because all payments will be made at the beginning of the period. If
there are two payments in advance, then one payment must be
combined with the present value. For examples with two or more
advance payments, see pages 75 and 199.
Example: Calculating a Lease Payment.
A new car valued at $13,500
is to be leased for 3 years. The lessee has the option to purchase the car
for $7,500 at the end of the leasing period. What monthly payments,
with one payment in advance, are necessary to yield the lessor 14%
annually
?
Calculate the payments from the lessor’s point of view. Use
Begin payment mode because the first payment is due at the inception
of the lease.
1
3
2
34
35
36
_13,500
7,500
14
12; Begin mode
36
Keys: Display: Description:
"
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Displays TVM menu.
.
12
Y
Z
e
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#$
5?@2
JH=;<"
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Sets 12 payment periods
per year, Begin mode.
36
T
<8%'&(("
Stores number of payments.
