A contract requires lease payments of $800 at the beginning of every month for 5 years. a. What is the present value of the contract if the lease rate is 4.75% compounded annually?   Round to the nearest cent b. What is the present value of the contract if the lease rate is 4.75% compounded monthly?   Round to the nearest cent

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter9: Sequences, Probability And Counting Theory
Section9.4: Series And Their Notations
Problem 56SE: To get the best loan rates available, the Riches want to save enough money to place 20% down on a...
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A contract requires lease payments of $800 at the beginning of every month for 5 years.
a. What is the present value of the contract if the lease rate is 4.75% compounded annually?
 
Round to the nearest cent
b. What is the present value of the contract if the lease rate is 4.75% compounded monthly?
 
Round to the nearest cent
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