For the Following Lease,determine the Minimum Lease Payments for the Lessor

question 24

Multiple Choice

For the following lease,determine the minimum lease payments for the lessor. $\begin{array}{|l|l|}\hline \text { Annual lease payment at the end of the end } & \$ 22,000 \\\hline \text { Lease term } & 5 \\\hline \text { Incremental rate } & 10 \% \\\hline \text { Implicit rate (unknown to lessee) } & 8 \% \\\hline \text { Unguaranteed residual value } & 15,000 \\\hline \text { Bargain purchase option } & 5,000\\\hline \end{array}$

• A)86,502
• B)91,243
• C)95,816
• D)101,451

---

Definitions:

Persuasion

A deliberate attempt to influence the attitudes and/or behavior of another person.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, policies, or social pressures.

Obedience

The act of following orders or complying with authority, often studied in the context of how people respond to commands from those in power.

Matching Hypothesis

The theory that individuals are more likely to form and succeed in relationships with others who are similarly attractive.