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Jenny Enterprises has just entered a lease agreement for a new manufacturing facility. Under the terms of the agreement, the company agreed to pay rent of $12,000 per month for the next 9 years with the
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Jenny Enterprises has just entered a lease agreement for a new manufacturing facility. Under the terms of the agreement, the company agreed to pay rent of $12,000 per month for the next 9 years with the first payment due today. If the APR is 6.36 percent compounded monthly, what is the value of the payments today?

User Dominic Woodman
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1 Answer

3 votes

Answer:

The value of the payments today = $990,072.84

Step-by-step explanation:

jenny:

rate =0.0636/12

n=9*12

pmt=12000

=PV(0.0636/12,9*12,12000,0,1)

=$990,072.84

User Tuffy
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