CALC 1 Home Documentation Home Contact
Loading

Time Value of Money Lease Example

A new car valued at $27,000 is to be leased for 3 years. The leasee has the option to purchase the car for $15,000 at the end of the lease. What monthly payments, with one payment in advance, are necessary to yield the lessor 7% annually. Calculate from the Lessor's point of view.

Value Keystrokes Display Description
  shift, clr f   Clears the financial variables.
12 STO, P/YR 12.00 Sets the payments per year. This also sets the compounding periods to the same value if using the Focused Calculator.
  shift, BEG   Sets the Begin payment mode because the first payment is due at the inception of the lease.
36 N 36.00 Stores the number of payments.
7 I/YR 7.00 Stores the desired interest rate.
-27000 PV -27,000.00 Stores the initial payment for the car, PV.
15000 FV 15,000.00 Stores the value at the end of the lease, FV.
  PMT 455.37 Calculates the payment, PMT.