Example: Effect on Monthly Payment of Shortening the Lease
Term
|
This example shows how shortening the lease term affects the other lease
amounts. |
Monthly Payment Calculation | $22,300 Cap Cost |
$22,300 Cap Cost |
$22,300 Cap Cost |
---|---|---|---|
Gross capitalized cost | $22,300 | $22,300 | $22,300 |
Capitalized cost reduction | $3,500 | $3,500 | $3,500 |
Adjusted capitalized cost | $18,800 | $18,800 | $18,800 |
Residual value | $12,350 | $13,800 | $15,500 |
Depreciation and any amortized amounts | $6,450 | $5,000 | $3,300 |
Rent charge | $5,295 | $4,156 | $2,915 |
Total of base monthly payments | $11,745 | $9,156 | $6,215 |
Number of lease payments | 48 | 36 | 24 |
Base monthly payment | $244.69 | $254.34 | $258.97 |
Return |