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Example: Effect on Monthly Payment of Changing the Residual
Value
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This example shows how changing the residual value 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 | $14,000 | $12,350 | $10,500 |
| Depreciation and any amortized amounts | $4,800 | $6,450 | $8,300 |
| Rent charge | $5,576 | $5,295 | $4,981 |
| Total of base monthly payments | $10,376 | $11,745 | $13,281 |
| Number of lease payments | 48 | 48 | 48 |
| Base monthly payment | $216.16 | $244.69 | $276.68 |
| Return |