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Table 6.1 FUTURE VALUE OF 1 (FUTURE VALUE OF A SINGLE SUM) FVFn,i = (1 + i)n (n)

ID: 2561228 • Letter: T

Question

Table 6.1 FUTURE VALUE OF 1 (FUTURE VALUE OF A SINGLE SUM) FVFn,i = (1 + i)n (n) Periods 4% 2% 1.02000 1.02500 1.03000 1.04000 1.05000 1.06000 1.04040 1.05063 1.06090 1.08160 1.10250 1.12360 1.06121 1.07689 1.09273 1.12486 1.15763 1.19102 1.08243 .10381 1.12551 1.16986 1.215511.26248 1.10408 .13141 1.15927 1.21665 1.27628 1.33823 1.12616 .15969 1.19405 1.26532 1.34010 1.41852 1.14869 1.18869 1.22987 1.31593 1.40710 1.50363 1.17166 1.21840 1.26677 1.36857 1.477461.59385 1.19509 1.24886 130477 1.42331 1.55133 1.68948 1.21899 1.28008 1.34392 1.48024 1.628891.79085 1.24337 1.31209 1.38423 1.53945 1.710341.89830 1.26824 1.34489 1.42576 1.60103 1.79586 .01220 1.29361 1.37851 1.46853 1.66507 1.88565 2.13293 1.31948 1.41297 1.51259 1.73168 1.97993 2.26090 1.34587 1.44830 1.55797 1.80094 2.078932.39656 1.37279 1.4845 1.60471 1.87298 2.18287 2.54035 1.40024 52162 1.65285 1.94790 2.29202 2.69277 1.42825 1.55966 1.70243 2.02582 2.40662 2.85434 1.45681 1.59865 1.75351 2.10685 2.52695 3.02560 2% 3% 5% 6% 4 10 12 13 14 15 16 17 18 19

Explanation / Answer

Fair value of leased asset to lessor. 401000 Less:Present value of unguaranteed residual value 13895 =22050*0.63017 Amount to be recovered through lease payments. 387105 Amount of the annual rental payment 77534 =387105/4.99271