HELP ME COMPLETE THE EXCEL I DID THE REST AND IM HAVING TROUBLE W THE FIRST PIC

Interest expense Payment Loan balance - end of year Loan balance - beginning of year 12/31/20 11,192 12/31/21 1/1/22 1/2/22 0 This amount should be zero or very close to it. 0 Down payment 1/1/20 Total Payments 4.000 Total payments if lease Savings by buying rather than leasing Undiscounted savings Undiscounted means the simple difference between total payments if you buy versus lease. Discounted savings (we did not cover it, extra credit, show work) Solution: 1. Cost of equipment 115192 Less: Down Payment 4000 Amount to be paid in installments 11192 Interest Rate 12% Years Annual Payment ($11192 / Annuity factor @ 12% for 4 years) Annuity Factor @ 12% for 4 years 3.037 Annual Payment (rounded off to nearest dollar) F11192/3.037 3685 2. Total Undiscounted $4000 + Payments ($3685*4) 18741 3. Interest Expense Recorded for Year 1 Annual Payment 3685 Loan amount 11192 Interest Portion =11192*12% 1343 4. Undiscounted payments for $20000 20000 Undiscounted payments for loan 18741 5. It is a wise choice to go in for the buy option on terms of $15192 @ 12% as you are spending a lesser amount compared to leasing option This question is based on TVM question 2 (see next page). The point is to convince you that at 12 percent discount rate, it would make more sense to buy than to lease. Suppose we decide the buy the equipment (not lease) for $15,192, not including interest of 12 percent. The down payment is $4,000. The remaining 4 payments are paid off as an ordinary annuity mortgage. 1. What are the annual end-of-year payments? 2. What are the total undiscounted payments? 3. How much interest expense is recorded for year 1? 4. Compare the total undiscounted lease payments of $20,000 to the total undiscounted payments you calculated above. 5. Does it make more sense to lease (based on 5 payments of $4,000) or to buy based on the terms of $15,192, 12 percent interest? [2] Stone Co. is considering the acquisition of equipment. To buy the equipment, the cost is $15,192. To lease the equipment, Stone must sign a noncancelable lease and make five payments of $4,000 each. The first payment will be paid on the first day of the lease. At the time of the last payment. Stone will receive title to the equipment. The present value of an ordinary annuity of $1 is as follows: Present Value No. of Periods 10% 12% 16% 0.9090.893 0.862 1.736 1.690 1.605 2.487 2.402 2.246 3.170 3.037 2.798 3.791 3.605 3.274 The interest rate implicit in this lease is approximately A. 10% B. 12% C. Between 10% and 12% D. 16%