Errata....
On May 3, 7:22 pm, I wrote:
> Ostensibly, you can plug those values into the Excel
> RATE function to get an answer. For example:
> =12*RATE(60,-450,20000)
> 1/12th of that is the "money factor" -- that is,
> simply RATE(60,-450,20000).
Of course, that should be 1/24th and RATE(60,-450,20000)/2.
> See the explanation on the following web pages:
> http://www.leaseguide.com/lease08.htm
.... Which says that the interest rate is 2400 times
the money factor. The extra 100 multiple is simply
to convert, for example, 0.125 -- the true
representation of 12.5% -- into 12.5.
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