1. Payments on a five-year lease valued at $48,750 are to be made at the beginning of every six months. If interest is 8.5% compounded quarterly, what is the size of the semi-annual payments? 2. What is the cash value today of a three-year lease of office facilities renting for $735.50 payable at the beginning of each month if money if worth 6% compounded monthly? 3. A Toyota RAV4 Limited 4WD V6 is advertised with low monthly lease payments of $488.86 for 48 months. The terms of the lease specify that the MSRP of the vehicle is $38,900 with a residual value of $17,502.80. A $6,250 down payment is required. a. What monthly compounded lease rate is Toyota charging? b. If Toyota also offers a $5,000 rebate and financing at 8.14% compounded semi-annually to pay off the car in 60 months, what would the end-of month payment have to be? 4. The marketing manager for Infiniti places an advertisement for the new Infiniti QX56. Suppose the MSRP of the vehicle is $75,050 with a residual value after 48 months of $29,602. What monthly lease payment should she advertise if a $5,000 down payment is required and Infiniti Financial Services requires 5.9% compounded annually on all leases? 5. After taxes and applicable fees, a small service vehicle has a lease price of $39,544.35. If a $3,000 down payment is required, monthly payments are $680.37, what is the residual value of the vehicle after 3 years. Interest charged is 3.75% compounded annually. 6. Proctor & Gamble plans to obtain production equipment for a lease price of $85,000 and requires a down payment of $15,000. What is the residual value after one year if interest charged is 9.99% compounded monthly and monthly payments are $5,609.67? 7. Anderson is the production manager at Voortman Cookies. He is considering leasing a new high efficiency oven that will improve productivity. The terms of the 10-year lease require quarterly payments of $35,125 including interest at 6.99% compounded monthly. a. If the equipment is valued at $1,315,557.95 today, what is the estimated residual value of the equipment when the lease expires? b. If 4-year financing at 7.12% compounded quarterly is required to pay off the residual value of the lease, what end-of quarter payments must be made?