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Equipment Lease Problem

A forklift with a purchase price of $22,000 is to be leased for 48 months. The Lessee has agreed to pay the first and last three payments in advance and will have a purchase option at the end of 48 months for 30% of the purchase price. What is the monthly payment necessary to provide the Lessor with a 15% annual return?

Car Lease Problem

The details of a new 2022 Chevy Suburban L4WD 4-door LT 39-month lease are as follows: Due at signing of $6,108, which includes the first month payment of $1,319, a bank acquisition fee of $995, a capital reduction payment of $2,999, and an agent service fee. The Chevy Suburban is a standard equipped vehicle with MSRP of $60,620 and a residual value of $24,248 | 40 % of MSRP. What is the effective interest rate of this lease?

Mortgage Problem

On September 30, 2022, Bill and Mary financed their new home with $425,000 3/1-year ARM. The current rate is 5.25% and the ARM has a lifetime cap of 10%. What is their current monthly payment and what will it be at the end of 3 years if the ARM is reset at the maximum lifetime cap?

Vendor Lease Problem

The vendor of a copier with a purchase price of $16,000 agreed to lease it to a customer for 36 months at $400 a month. The first 3 rents are payable in advance at closing. At the end of the lease the customer can purchase the copier for 15% of the original purchase price or return it to the vendor along with an $700 restocking fee. Is it likely that the lease will be treated as an operating for the lessee?

Graduated Payments Problem

Restructure a traditional $425,000 30-year mortgage at fixed rate of 7.25% as a graduated payment schedule in which the monthly payments escalate annually for the first 6 years at 6.0% and thereafter remain fixed.