Kingbird Company leases an automobile with a fair value of $20,275 from John Simon Motors, Inc., on the following terms:

1.		Non-cancelable term of 50 months.
2.		Rental of $430 per month (at the beginning of each month). (The present value at 0.5% per month is $19,077.)
3.		Kingbird guarantees a residual value of $1,030 (the present value at 0.5% per month is $803). Delaney expects the probable residual value to be $1,030 at the end of the lease term.
4.		Estimated economic life of the automobile is 60 months.
5.		Kingbirds incremental borrowing rate is 6% a year (0.5% a month). Simons implicit rate is unknown.

Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

(g)

Suppose that instead of $1,030, Kingbird expects the residual value to be only $500 (the guaranteed amount is still $1,030). How does the calculation of the present value of the lease payments change from part (b)? (Round answer to 0 decimal places, e.g. 5,275.)

PV of lease payments

$enter the present value of lease payments in dollars rounded to 0 decimal places

I just need help with part G please