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A contract requires lease payments of $700 at the beginning of every month for 8 years. a. What is the present value of the contract

A contract requires lease payments of $700 at the beginning of every month for 8 years.

a. What is the present value of the contract if the lease rate is 3.75% compounded annually?

b. What is the present value of the contract if the lease rate is 3.75% compounded monthly?

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