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

topcat

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

Nps

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.

topcat

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!

Nps

Yes it is.