Pine Leasing Company purchased specialized equipment from Wayne Company on December 31, 2019 for $730,000. On the same date, it leased this equipment to Sears Company for 5 years, the useful life of the equipment. The lease payments begin January 1, 2020 and are made every 6 months until July 1, 2024. Pine Leasing wants to earn 10% annually on its investment.

Various Factors at 10%

Periods

or Rents Future

Value of $1 Present

Value of $1 Future Value of an

Ordinary Annuity Present Value of an

Ordinary Annuity

9 2.35795 0.42410 13.57948 5.75902

10 2.59374 0.38554 15.93742 6.14457

11 2.85312

0.35049 18.53117 6.49506

Various Factors at 5%

Periods

or Rents Future

Value of $1 Present

Value of $1 Future Value of an

Ordinary Annuity Present Value of an

Ordinary Annuity

9 1.01725 0.64461 11.02656 7.10782

10 1.62889 0.61391 12.57789 7.72173

11 1.71034 0.58468 14.20679 8.30641

Calculate the amount of each rent. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Amount of rent $

How much interest revenue will Pine earn in 2020? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Interest revenue $