Answer:
= $ 14,303.62
Explanation:
Total number of payments= 4× 12 = 48
The present value of the lease payment will be determined as follows:
Step 1
Determine the PV of last 47 payments. This is required because the first payment is already in present value term as it receivable immediately.
PV = A × 1 - (1+r )^(-n)
r - 6.12%/12 = 0.51%, A = 335
PV = 335 × ( 1- (1.0051)^(-47)/0.0051 )
PV = 335 × 41.697
PV = 13,968.62
Step 2
Present Value of Lease payments
= PV of last 47 payments + $335
= 13,968.62 + 335
= $ 14,303.62
The value of the payments today $ 14,303.62
