On January 1, 2020, ABC Company signed a three-year lease for the acquisition of equipment. Monthly lease payments of $3,600, based on an annual interest rate of 12% are to be made every January 1, beginning with January 1, 2020. Compute the present value of the minimum lease payments for ABC Company for the capital lease. Following are appropriate factors from tables:

Table % / n	Present Value of annuity due $1	Present Value of ordinary annuity of $1	Present value of $1
12%/3	2.69005	2.40183	.07379
1%/36	30.40858	30.10751	.69892

Required Computation:

On January 1, 2020, Smith Company signed a five-year Note for the acquisition of equipment. Annual interest and principal payments of $15,000, based on an interest rate of 8% are to be made every December 31, beginning with December 2020. Compute the value of the Note at 1/1/20. Following are appropriate factors from tables:

Table % / n	Present Value of annuity due $1	Present Value of ordinary annuity of $1	Present value of $1	Future Value of ordinary annuity of $1
8%/5	4.31213	3.99271	.68058	5.86660

Required Computation