Crane Limited is leasing a used Caterpillar excavator to Town Construction Ltd. The term of the lease is 7 years and the excavator will be owned by Town at the end of the lease if Town makes an additional payment to Crane of $50,000. The excavator cost Crane $450,000. Crane wants to charge a rate of 10% on the lease. What will be the amount of the annual lease payments if the payments are made at the end of each of the next 7 years?

Calculate the annual lease payments if the payments are made at the end of each of the next 7 years?