Example: Effect on Monthly Payment of Changing the Gross
Capitalized Cost
|
This example shows how changing the gross capitalized cost affects the
other lease amounts. |
Monthly Payment Calculation | $23,050 Cap Cost |
$22,300 Cap Cost |
$19,800 Cap Cost |
---|---|---|---|
Gross capitalized cost | $23,050 | $22,300 | $19,800 |
Capitalized cost reduction | $3,500 | $3,500 | $3,500 |
Adjusted capitalized cost | $19,550 | $18,800 | $16,300 |
Residual value | $12,350 | $12,350 | $12,350 |
Depreciation and any amortized amounts | $7,200 | $6,450 | $3,950 |
Rent charge | $5,423 | $5,295 | $4,870 |
Total of base monthly payments | $12,623 | $11,745 | $8,820 |
Number of lease payments | 48 | 48 | 48 |
Base monthly payment | $262.97 | $244.69 | $183.76 |
Return |