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Lada Lada
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Posts: 357
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6 years ago
An investment in a lease offers returns of $4000 per month due at the beginning of each month for 5 years. What investment is justified if the returns are deferred for three years and the interest required is 12% compounded monthly?
Textbook 
Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
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wrote...
6 years ago
i = 0.12 ÷ 12 = 0.01
PVn (due) = 4000 (1.01)
   = 4000(44.95503841)(1.01) = $181 618.36
PV = 181618.36 (1.01)-36 = 181618.36 (.6989249496) = $126 937.60
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