::::|| VU ||:::: Question for those having interest in accounting

Question:



ABC Enterprises has planned to purchase an asset on lease from G
Corporation. The fair value of the asset is Rs.100,000 and the lease
rentals will be Rs.15,636 payable half-yearly whereas Rs. 20,000
payable as down payment. The un-guaranteed residual value of the asset
after the three-years lease period will be Rs.4,000. The implicit
annual interest rate in the lease agreement is 9.5%. The present value
of the minimum lease payment is Rs.80,000. The last payment is to be
made in full along with the interest charges due.



Required:

Find out the total amount of installments and interest respectively
associated with this lease agreement.

Note:

Complete working must be shown in tabular form.
kindly solve this GDB
thanks in advance

--
--
For study materials, past papers and assignments,
Join VU School at www.vuscool.com

Facebook Group link
http://www.facebook.com/groups/vuCoooL

CoooL Virtual University Students Google Group.
To post to this group, send email to coool_vu_students@googlegroups.com

home page
http://groups.google.com/group/coool_vu_students?hl=en