Interest rate implicit in the lease 3.

893%
First year discount variable 103.89%

Discount Discounted
Years Amounts
variable amounts

Minimum lease payments 1 6,000 1.0389 5,775

2 6,000 1.0794 5,559
3 6,000 1.1214 5,350
4 6,000 1.1651 5,150
5 500 1.2104 413
6 500 1.2575 398

Unguaranteed residual amount 6 1,500 1.2575 1,193

Total discounted amount/ net investment in the lease 23,837

©2016 For information contact Deloitte Touche Tohmatsu Limited

 Interest rate
implicit in the
lease
3.893%
Period Debtor Interest Lease Payments Closing debtor
Year 1 23,837 928 6,000 18,765
Year 2 18,765 732 6,000 13,496
Year 3 13,496 526 6,000 8,023
Year 4 8,023 312 6,000 2,335
Year 5 2,335 91 500 1,926
Year 6 1,926 75 500 1,501

©2016 For information contact Deloitte Touche Tohmatsu Limited

 Principal repaid
5,072
5,268
5,474
5,688
409
425

©2016 For information contact Deloitte Touche Tohmatsu Limited