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Example: Effect on Monthly Payment of Shortening the Lease
Term
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This example shows how shortening the lease term affects the other lease
amounts. |
| Monthly Payment Calculation | $22,300 Cap Cost |
$22,300 Cap Cost |
$22,300 Cap Cost |
|---|---|---|---|
| Gross capitalized cost | $22,300 | $22,300 | $22,300 |
| Capitalized cost reduction | $3,500 | $3,500 | $3,500 |
| Adjusted capitalized cost | $18,800 | $18,800 | $18,800 |
| Residual value | $12,350 | $13,800 | $15,500 |
| Depreciation and any amortized amounts | $6,450 | $5,000 | $3,300 |
| Rent charge | $5,295 | $4,156 | $2,915 |
| Total of base monthly payments | $11,745 | $9,156 | $6,215 |
| Number of lease payments | 48 | 36 | 24 |
| Base monthly payment | $244.69 | $254.34 | $258.97 |
| Return |