On May 3, 1:39 pm, Joe <JoSc...@[EMAIL PROTECTED]
> wrote:
> I've been offered a chance to invest in funding equipment leases.
>
> While researching the field, I haven't found anyone that can (or will)
explain
> how to convert lease rates or money factors to interest rates.
>
> I an manually plugin and change an interest rate in a mortgage program
until the
> interest rate provides the same payment, but now I'm really curious
about how
> lease firms determine the money factor.
>
> Is it a basic equation, or something more advanced?
According to http://www.leaseguide.com/lease08.htm
(which you should
read):
Interest Rate = Money Factor x 2400
Dave
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