Hi,
What is the formula for Present Value in Lease Accounting? I comparing it to the excel PV formula
I don’t seem to get it match?
Any idea?
Thanks!
Best answer by Janith Bandara
View originalHi,
What is the formula for Present Value in Lease Accounting? I comparing it to the excel PV formula
I don’t seem to get it match?
Any idea?
Thanks!
Best answer by Janith Bandara
View originalHi
You need to divide rate by 12 months to get the monthly compound rate.That is 10%/12
10%=0.1
BR/Janith
Hi
Thanks for the answer but I getting a different value base on your formula?
How to do “^1” in a normal calculator?
I’d used google to calculate and this is what I got
Hi
Usually the formula is [1/(1+r)^np] *Lease payment
for an example if the schedule consists of 12 months the PV calculation is as follows
PV calculation of Installment No 1 is 99173.55
It is calculated as follows
1/(1+10%/12)^1=0.9917355
0.9917355*100000=99173.55
PV calculation of Installment No 2 is 98353.94
It is calculated as follows
1/(1+10%/12)^2=0.9835394
0.9835394*100000=98353.94
BR/Janith
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