Question
The Washington DMV leases a building for 20 years. The lease requires 20 annual payments of $14,000 each, with the first payment due immediately. The
The Washington DMV leases a building for 20 years. The lease requires 20 annual payments of $14,000 each, with the first payment due immediately. The interest rate in the lease is 11%. What is the present value of the cost of leasing the building? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 2 decimal places, e.g. 52.75.)
Click here to view the factor table.
| Present value | $enter the present value in dollars rounded to 2 decimal places |
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Number of annual payments n 20 Annual payments 14000 Interest rate 1 11 ...
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Money Banking and Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
4th edition
007802174X, 978-0078021749
