[FS] How to work out the finance change on a fiance lease?

topcattopcat Trusted RegularPosts: 452Registered
Hi all,

i am baffled by this the minimum lease repayments are £28,000 so where does the £36,000 come from i can not figure it out...

Any help much appreciated

gApea.jpg

DMxZm.jpg

Comments

  • NpsNps Experienced Mentor Posts: 782Registered
    28,000 is the present value of the lease payments, but the question tells you that they will actually be paying 4 lots of £9000, which is a total of £36,000.
  • topcattopcat Trusted Regular Posts: 452Registered
    Nps wrote: »
    28,000 is the present value of the lease payments, but the question tells you that they will actually be paying 4 lots of £9000, which is a total of £36,000.

    Thanks very much NPS :001_smile:

    what is the difference between present value of min lease repayments and minimum lease repayments?

    Is the present value using discounted cash flow or something?

    Never struggled this much with a unit!
  • NpsNps Experienced Mentor Posts: 782Registered
    Yes it is.
Sign In or Register to comment.