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You want to lease a riding mower from Mowers, Inc.. The lease contract is in the form of 24 equal monthly payments at a 18
You want to lease a riding mower from Mowers, Inc.. The lease contract is in the form of 24 equal monthly payments at a 18 percent stated annual rate, compounded monthly. Because the mower costs $5000 retail, Mowers Inc. wants the present value of the lease payments to equal $5000. Suppose your first payment is due immediately. What will your monthly lease payments be? (Hint: This is an annuity due.)
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