Haworth

Leasing leased a car to a customer.

Haworth

will receive

$150

a month, at the end of each month, for

48

months. Use the PV function in

Excel

to calculate the answers to the following questions

1.	What is the present value of the lease if the annual interest rate in the lease is 12%?
2.	What is the present value of the lease if the car can likely be sold for $4,000 at the end of four years?

1. What is the present value of the lease if the annual interest rate in the lease is

12%?

(Do not round intermediary computations, but round your final answer to the nearest cent.)

The present value of the lease is

2. What is the present value of the lease if the car can likely be sold for

$4,000

at the end of

four

years? (Do not round intermediary computations, but round your final answer to the nearest cent.)

The present value of the lease is