A lease is a contract outlining the terms under which one party agrees to rent property owned by another party.
Lease payment is the amount provided by the lease holder on a regular basis to the owner of the property for a specific period of time in exchange for use of the property.
Formula to calculate Lease payment.
Depreciation fee is what the lessee pays the lessor for the loss in value of the asset.
Finance fee is a fee representing the cost of credit, or the cost of borrowing.
Sales tax is the state or local tax charged on the sale price.
Example:
An individual leased an apartment from a real estate company. He was charged a depreciation fee of $ 100, a finance fee of $ 50 and a sales tax of $ 30. Calculate her lease payment.
Therefore, her lease payment is $ 180.
