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Fillmore Barbers decides to lease another barbershop for a 10-year period. The barbershop has a cash price of $140,000. If Fillmore borrowed money to purchase
Fillmore Barbers decides to lease another barbershop for a 10-year period. The barbershop has a cash price of $140,000. If Fillmore borrowed money to purchase the shop, it would have had to pay 8% interest. (Click the icon to view the Present Value of $1 table.) (Click the icon to view the Future Value of $1 table.) (Click the icon to view the Future Value of an Ordinary Annuity table.) (Click the icon to view the Future Value of an Annuity Due table.) (Click the icon to view the Present Value of an Ordinary Annuity table.) Read the requirement. (Use the present value and future value tables, a financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round your final answer to the nearest cent, $X.XX.) (Click the icon to view the Present Value of an Annuity Due table.) a. What are the required payments if the lease agreement requires annual payments beginning one year from today? The required payments are $ b. What are the required payments if the lease agreement requires semiannual payments beginning six months from the agreement date? The required payments are $ c. What are the required payments if the lease agreement requires quarterly payments beginning today? The required payments are $
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