Mgt401 2nd GDB solution spring 2012

Solution:
Fair Value       = 100,000
Down Payment= 20,000
Interest Rate    = 9.5% P.A
Installments     = 6 half yearly

No. of Installments	Lease Rental	Financial Charges	Principal	Principal Outstanding
				80,000
1	15,636	3,800	11,836	68,164
2	15,636	3,238	12,398	55,766
3	15,636	2,649	12,987	42,779
4	15,636	2,032	13,604	29,175
5	15,636	1,386	14,250	14,925
6	15,634	709	14,925	0
Total	93,814	13,814	80,000