Splish Brothers Company is negotiating to lease a piece of equipment to Sunland, Inc. Sunland requests that the lease be for $9$ years. The equipment has a useful life of $10$ years. Splish Brothers wants a guarantee that the residual value of the equipment at the end of the lease is at least $$4,000.$ Sunland agrees to guarantee a residual value of this amount though it expects the residual value of the equipment to be only $$2,000$ at the end of the lease term.

If the fair value of the equipment at lease commencement is $$120,000,$ what would be the amount of the annual rental payments Splish Brothers demands of Sunland, assuming each payment will be made at the beginning of each year and Splish Brothers wishes to earn a rate of return on the lease of $11\%?($For calculation purposes, use $5$ decimal places as displayed in the factor table provided and round final answer to $0$ decimal places, e$.$g$.5,275.)$

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Amount of equal annual lease payments

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