ayodayo

I figured out your second point;
if you're making end of year payments, then my method of separating the interest and principal is correct;

if you're making beginning of year payments, there will be 0 interest accrued at the inception of the lease, so in that case, the whole first payment would go to principal.

the only oncertainty now is whether principal payment is investing or financing, and I'm leaning more towards financing now, but will check that out later.