A lease requires payments of $25,000 in arrears for 4 years; the rate implicit in the lease is 7% (4-year annuity factor = 3.387). What is the initial lease liability (in $, to the nearest $)?
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Lease
25d ago#1The answer is $84,675, calculated by $25,000 × 3.387.
You had already done the hard part, by calculating the 4-year annuity factor.
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