Question 2 of 5 A contract requires lease payments of $800 at the beginning of every...

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Question 2 of 5 A contract requires lease payments of $800 at the beginning of every month for 10 years. a. What is the prese

Answer 1

Answer #1

1.
Using financial calculator
Set the mode to BGN
PMT=-800
N=12*10
I/Y=(1+5.94%)^(1/12)-1
PV=0
CPT FV=130203.70

2.
Using financial calculator
Set the mode to BGN
PMT=-800
N=12*10
I/Y=(1+5.94%/365)^(365/12)-1
PV=0
CPT FV=131427.31

Answer 2

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