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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

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 #1
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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
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thank u
 Oct 3, 2013

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