Question
A construction company agreed to lease payments of $613.36 on construction equipment to be made at the end of every month for 6 years. Financing
A construction company agreed to lease payments of $613.36 on construction equipment to be made at the end of every month for 6 years. Financing is at 12% compounded monthly. (a) What is the value of the original lease contract? (b) If, due to delays, the first 8 payments were deferred, how much money would be needed after 9 payments to bring the lease payments up to date? (c) How much money would be required to pay off the lease after 9 payments? (d) If the lease were paid off after 9 payments, what would the total interest be? (e) How much of the total interest would be due to deferring the first 8 payments?
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