please explain this answer further, how do I get Pva ordinary? And is purchase power the purchase price?

Given the number of months of a lease term, the $ amount of the payments each month, and the purchase price of the item being leased, how do you find the annual interest rate? Please use an example or show an equation. Expert Answer o Anonymous answered this 9 answers Was this answer helpful? Answer: Rate let annual interest rate=r let number of months of lease term = n Let Purchasing power be = PVA the annual interest rate is computed as Annuity = r * PVA Ordinary / [1 - (1 + r)"} Hence the annual interest rate r = Annuity * (1 - (1+r)") / PVA Ordinary Comment >