Windsor Company is negotiating to lease a piece of equipment to Wildhorse, Inc. Wildhorse requests that the lease be for $9$ years. The

equipment has a useful life of $10$ years. Windsor wants a guarantee that the residual value of the equipment at the end of the lease is at

least $$4,000.$ Wildhorse agrees to guarantee a residual value of this amount though it expects the residual value of the equipment to

be only $$2,500$ at the end of the lease term.

If the fair value of the equipment at lease commencement is $$90,000,$ what would be the amount of the annual rental payments

Windsor demands of Wildhorse, assuming each payment will be made at the beginning of each year and Windsor 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, e$.$g$.5,275.)$

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