C/Users/croxa/AppData/local/temp/MicrosoftEdgeDownloads/idba57ed-1224-4b2b-a733-10693266C.. + QE A Read aloud Draw Highlight Problem #4 (15 points) Jewel Company, as lessee, enters into a lease agreement on January 1, 2020, to lease equipment The following data are relevant to the lease agreement. The term of the noncancellable lease is three years, with no renewal option. The fair value of the equipment on January 1, 2020 is $34,500. The estimated residual value is $0. The equipment reverts back to the lessor at the termination of the lease. The lessor used an implicit rate of 5%. Instructions: -Calculate the required amount of the lease payments (Present Value & Future Value Tables are provided on pages 3 and 4) o . e $ 3 4 5 6 co 7 8 9 0 Present Value of an Ordinary Annuity of 1 PVF-OA,i=1-41-48 (n) Periods 2% 2AV.% 3% 4% 5% 6% 98039 97561 97087 96154 95238 94340 2 1.94156 1.92742 1.91347 1.88609 1.85941 1.83339 3 2.88388 2.85602 2.82861 2.77509 2.72325 2.67301 3.80773 3.76197 3.71710 3.62990 3.54595 3.46511 4.71346 4.64583 4.57971 4.45182 4.32948 4.21236 M 8 5.60143 5.50813 5.41719 5.24214 5.07569 4.91732 6.47199 6.349396.23028 6.00205 5.78637 5.58238 7.32548 7.170147.01969 6.73274 6.46321 6.20979 8.16224 7.970877.78611 7.43533 7.10782 6.80169 8.98259 8.75206 8.53020 8.1 1090 7.72173 7.36009 Present Value of an Annuity Due of PVF-AD..=1+1-1(1+1-1 (n) Periods 2% 2% 3% 4% 5% 1 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 2 1.98039 1.97561 1.97087 1.96154 1.95238 1.94340 3 2.94156 2.92742 2.91347 2.88609 2.85941 2.83339 4 3.88388 3.85602 3.82861 3.77509 3.72325 3.67301 4.80773 4.76197 4.71710 4.62990 4.54595 4.46511 6 7 8 9 10 5.71346 5.64583 5.57971 5.45182 5.32948 5.21236 6.60143 6.50813 6.41719 6.24214 6.07569 5.91732 7.47199 7.34939 7.23028 7.00205 6.78637 6.58238 8.32548 8.17014 8.01969 7.73274 7.46321 7.20979 9.16224 8.97087 8.78611 8.43533 8.10782 7.80169 W Present Value of 1 (Present Value of a Single Sum) PVF..1=1(1). (1+i). (n) Periods 2% 2% 3% 5% 6% 1 98039.97561 97087.96154 95238.94340 2 .96117.95181 94260.92456 .90703.89000 3 94232 92860 91514.88900.86384.83962 4 .92385.90595 .88849.85480.82270.79209 90573.88385_86261.82193.78353.74726 8 9 .88797.86230 .83748.79031.74622.70496 -87056_84127.81309.75992 .71068 66506 .85349 82075 78941.73069.67684 62741 83676.80073 76642.70259.64461.59190 .82035.78120 74409 67556 61391.55839 Future Value of an Ordinary Annuity of FVF-OA. (1+i)n-li (n) Periods 2% 2A%% 3% 4% 5% 6% 1 1.00000 1.00000 1.00000 1.00000 1.00000 100000 2 2.02000 2.02500 2.03000 2.04000 2.05000 2.06000 3 3.06040 3.07563 3.09090 3.12160 3.15250 3.18360 4.12161 4.15252 4.18363 4.24646 4.31013 4.37462 5 5.20404 5.25633 5.30914 5.41632 5.52563 5.63709 6 7 8 9 10 6.30812 6.38774 6.46841 6.63298 6.80191 6.97532 7.43428 7.54743 7.66246 7.89829 8.14201 8.39384 8.58297 8.73612 8.89234 9.21423 9.54911 9.89747 9.75463 9.95452 10.15911 10.58280 11.02656 11.49132 10.94972 11.20338 11.46338 12.00611 12.57789 13.18079 W OD C/Users/croxa/AppData/local/temp/MicrosoftEdgeDownloads/idba57ed-1224-4b2b-a733-10693266C.. + QE A Read aloud Draw Highlight Problem #4 (15 points) Jewel Company, as lessee, enters into a lease agreement on January 1, 2020, to lease equipment The following data are relevant to the lease agreement. The term of the noncancellable lease is three years, with no renewal option. The fair value of the equipment on January 1, 2020 is $34,500. The estimated residual value is $0. The equipment reverts back to the lessor at the termination of the lease. The lessor used an implicit rate of 5%. Instructions: -Calculate the required amount of the lease payments (Present Value & Future Value Tables are provided on pages 3 and 4) o . e $ 3 4 5 6 co 7 8 9 0 Present Value of an Ordinary Annuity of 1 PVF-OA,i=1-41-48 (n) Periods 2% 2AV.% 3% 4% 5% 6% 98039 97561 97087 96154 95238 94340 2 1.94156 1.92742 1.91347 1.88609 1.85941 1.83339 3 2.88388 2.85602 2.82861 2.77509 2.72325 2.67301 3.80773 3.76197 3.71710 3.62990 3.54595 3.46511 4.71346 4.64583 4.57971 4.45182 4.32948 4.21236 M 8 5.60143 5.50813 5.41719 5.24214 5.07569 4.91732 6.47199 6.349396.23028 6.00205 5.78637 5.58238 7.32548 7.170147.01969 6.73274 6.46321 6.20979 8.16224 7.970877.78611 7.43533 7.10782 6.80169 8.98259 8.75206 8.53020 8.1 1090 7.72173 7.36009 Present Value of an Annuity Due of PVF-AD..=1+1-1(1+1-1 (n) Periods 2% 2% 3% 4% 5% 1 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 2 1.98039 1.97561 1.97087 1.96154 1.95238 1.94340 3 2.94156 2.92742 2.91347 2.88609 2.85941 2.83339 4 3.88388 3.85602 3.82861 3.77509 3.72325 3.67301 4.80773 4.76197 4.71710 4.62990 4.54595 4.46511 6 7 8 9 10 5.71346 5.64583 5.57971 5.45182 5.32948 5.21236 6.60143 6.50813 6.41719 6.24214 6.07569 5.91732 7.47199 7.34939 7.23028 7.00205 6.78637 6.58238 8.32548 8.17014 8.01969 7.73274 7.46321 7.20979 9.16224 8.97087 8.78611 8.43533 8.10782 7.80169 W Present Value of 1 (Present Value of a Single Sum) PVF..1=1(1). (1+i). (n) Periods 2% 2% 3% 5% 6% 1 98039.97561 97087.96154 95238.94340 2 .96117.95181 94260.92456 .90703.89000 3 94232 92860 91514.88900.86384.83962 4 .92385.90595 .88849.85480.82270.79209 90573.88385_86261.82193.78353.74726 8 9 .88797.86230 .83748.79031.74622.70496 -87056_84127.81309.75992 .71068 66506 .85349 82075 78941.73069.67684 62741 83676.80073 76642.70259.64461.59190 .82035.78120 74409 67556 61391.55839 Future Value of an Ordinary Annuity of FVF-OA. (1+i)n-li (n) Periods 2% 2A%% 3% 4% 5% 6% 1 1.00000 1.00000 1.00000 1.00000 1.00000 100000 2 2.02000 2.02500 2.03000 2.04000 2.05000 2.06000 3 3.06040 3.07563 3.09090 3.12160 3.15250 3.18360 4.12161 4.15252 4.18363 4.24646 4.31013 4.37462 5 5.20404 5.25633 5.30914 5.41632 5.52563 5.63709 6 7 8 9 10 6.30812 6.38774 6.46841 6.63298 6.80191 6.97532 7.43428 7.54743 7.66246 7.89829 8.14201 8.39384 8.58297 8.73612 8.89234 9.21423 9.54911 9.89747 9.75463 9.95452 10.15911 10.58280 11.02656 11.49132 10.94972 11.20338 11.46338 12.00611 12.57789 13.18079 W OD