Larkspur company is negotiating to lease a piece of equipment to mtba Inc mtba request that the lease before 9 years the equipment has a useful life of 10 years Larkspur wants a guarantee that the residual value of the equipment at the end of the lease is at least $7,000 mtba agrees to guarantee a residual value of this amount though it expects residual value of equipment to be only 2,500 at the end of the least term if the fair value of the equipment at least convention is $95,000 what would the amount of annual rent payment Larkspur demands of mtba assuming each payment will be made at the beginning of each year and Larkspur wishes to earn a rate of return at least 8%