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

topcattopcat Trusted RegularRegistered Posts: 452
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

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Comments

  • NpsNps Experienced Mentor Registered Posts: 782
    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 Registered Posts: 452
    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 Registered Posts: 782
    Yes it is.
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