The cost of a set of equipment leased by the bank to JSC FANTOM is 240,000 EUR.
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Question:
The cost of a set of equipment leased by the bank to JSC “FANTOM” is 240,000 EUR. The first (initial) payment by JSC “FANTOM” to the bank is 20% of the total cost of the equipment set. The term of the leasing agreement is 2 years. The annual leasing interest rate is 8%. According to the leasing agreement quarterly payments are defined (the frequency of leasing payments is 1 time per quarter).
Required:
1) determine the amount of leasing payments during the whole period of validity of the leasing agreement.
2) determine the amount of the bank's income received as a result of this leasing transaction.
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