Use the Information for the Question(s)below

question 46

Essay

Use the information for the question(s)below.
Suppose the purchase price of a bulldozer is $90,000,its residual value in four years is certain to be $15,000,and there is no risk that the lessee will default on the lease.Assume that capital markets are perfect and the risk-free interest rate is 6% APR with monthly compounding.
-Calculate the monthly lease payments for a four-year fixed price lease that allows the lessee to buy the bulldozer at the end of the lease for $8000.

---

Definitions:

Security Insurance Agency

A specialized agency that provides insurance products designed to protect assets and individuals from various forms of security risks, such as theft or cyber-attacks.

Documents Of Title

Legal documents proving ownership or entitlement to a specific asset or property.

Bailee

A person or entity who is given temporary possession but not ownership of a property under a bailment agreement.

Trucking Company

A business entity that specializes in the transportation of goods and materials over land, typically using large vehicles like trucks.