Mequon Inc. wishes to lease machinery to Thiensville Company. Thiensville wants the machinery for 4 years even though it has a useful life of 10 years. The machinery has a fair value at the commencement of the lease of 47,000, and Mequon expects the machinery to have a salvage value at the end of the lease of $30,000. Thiensville Company does not guarantee any part of the residual value. Thiensville Company does expect the residual value to be $45,000 instead of $30,000.

What would be the amount of the annual rental payments that Mequon Inc. demands of Thiensville assuming each payment will be made at the end of year and Mequon wishes to earn a rate of return on the lease of 6%? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to 0 decimal places).

Amount of equal annual lease payments $ _______________

factor table is not provided. Use table 6.1, Future value of 1 (Future Value of a single sum).

Please advise.