#7

Question 7 You leased retail space 12 years ago for $6,450 per month, payable at the beginning of each month. Your lease is for 20 years and allows you to sublease the space. You have decided to move your business to another location and sublease to Thai Pagoda Palace for $8,500 at the beginning of each month for the remainder of the lease. What is the value of your position (referred to as a leasehold interest), assuming that money is worth 6.7% compounded monthly? $152,021.83 $633,853.79 $152,870.62 $630,334.42 Question 7 You leased retail space 12 years ago for $6,450 per month, payable at the beginning of each month. Your lease is for 20 years and allows you to sublease the space. You have decided to move your business to another location and sublease to Thai Pagoda Palace for $8,500 at the beginning of each month for the remainder of the lease. What is the value of your position (referred to as a leasehold interest), assuming that money is worth 6.7% compounded monthly? $152,021.83 $633,853.79 $152,870.62 $630,334.42