Lease payment question 2. The lease payments are $441,000 at 7%. Over 20 years I got discount rate (1/1.07)20= 0.258. I I don’t understand how the answer gives Dr Interest 350 & creditor 91 (Cr cash 441) ? Advise please, thanks
Why are you taking the 20 year discount factor? Surely it should be just for the next year?
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