Loading [MathJax]/jax/output/SVG/config.js
web2.0calc
 
+0  
 

math

0
569
2
avatar
What is the value of this 20 year lease? The first payment, due one year from today is $2,000 and each annual payment will increase by 4%. The discount rate used to evaluate similar leases is 9%. (Round to the nearest dollar.)
 Oct 3, 2013

2+0 Answers

 #1
avatar
0
A=Pe^rt
time=t=20 years
P=initial payment=2,000
rate=r=4%=0.04
e=constant

Therefore,

A=2000e^(.04*20)
 Oct 3, 2013
 #2
avatar
0
thank u
 Oct 3, 2013

2 Online Users

Top Users

avatar+130462 CPhill moderator
avatar+37165 ElectricPavlov
avatar+33654 Alan moderator
avatar+15054 asinus moderator
avatar+3146 admin administrator
avatar+2245 GingerAle
avatar+1946 NotThatSmart
avatar+1776 bader
avatar+1734 blackpanther
avatar+1721 parmen
avatar+1556 kittykat

Sticky Topics