An asset worth $200,000 [C]is to be leased over 4 years. Annual payments are due in arrears and a residual payment of $20,000 [R]is due at the end of the lease term. The lessor’s interest rate (iL) is 15%. What will the lease payments [LP] be?
Why is the PMT answer incorrect when calculated by the financial calculator, N=4, I/Y=15, PV=200000, FV=20000,CPT PMT? What is the error?
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