(12C) Advance Payments in a Lease
08-07-2016, 07:54 PM
Post: #1
 Eddie W. Shore Senior Member Posts: 753 Joined: Dec 2013
(12C) Advance Payments in a Lease
The program calculates the payment where you pay number of payments in advance.

Formula:

Where:
SPPV: present value of $1, where FV is equal to 1 USPV: present value of$1, where PMT is equal to 1

Input:

Number of payments, [ STO ] [ 0 ]
Number of payments made in advance, [ STO ] [ 1 ]
Periodic Rate, [STO] [ 2 ]
Price of the Lease, [STO] [ 3 ]
Salvage Value, [ STO ] [ 4 ]

Calculate lease payment by pressing [R/S].
Code:
 STEP    CODE    KEY 01    42, 34    Clear FIN  ([ f ] [x<>y]) 02    1    1 03    16    CHS 04    15    FV 05    45, 2    RCL 2 06    12    i 07    45, 0    RCL 0 08    11    n 09    13    PV 10    45, 4    RCL 4 11    20    * 12    16    CHS 13    45, 3    RCL 3 14    30    - 15    45, 11    RCL n 16    45, 1    RCL 1 17    30    - 18    11    n 19    45, 15    RCL FV 20    14    PMT 21    0    0 22    15    FV 23    13    PV 24    45, 1    RCL 1 25    40    + 26    10    ÷ 27    43, 33, 00    GTO 00

Example:

A machine with a cost of $40,000.00 is leased for 48 months. Two advanced payments are required. Interest rate is 10% (monthly periodic rate is 10%/12). The residual value is estimated to be$15,000.

Input:

48 [STO] [ 0 ] \\ term
2 [STO] [ 1 ] \\ 2 advanced payments
10 [ENTER] 12 [ ÷ ] [STO] [ 2 ] \\ interest rate
40000 [STO] [ 3 ] \\ cost
15000 [STO] [ 4 ] \\ salvage value

Result:

[R/S] -1249.30 (Each payment is $1,249.30. Two advanced payments are$2,498.60).

Source: HP 17bII+ Financial Calculator User’s Guide. Hewlett Packard. Edition 3: 2007
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