Determining Lease Liability

Applied Inc. signed a 10-year lease for its corporate office space on January 2, 2020. The first annual payment of $168,000 is due immediately. Assuming an interest rate of 5%, what is the present value of the lease liability?

• Round answer to the nearest whole dollar.
• Do not use a negative sign with your answer.

Determining Annual Loan Payment

Americ Inc. borrowed $224,000 on January 1, 2020, with repayment scheduled over a 10-year period, with payments due at the end of each year at an interest rate of 7%. What is Americs annual payment on this loan?

• Round answer to the nearest whole dollar.
• Do not use a negative sign with your answer.