QUESTION 1: A construction company agreed to lease payments of $452.56 on construction equipment to be made at the end of every month for 9.5 years. Financing is at 11% compounded monthly. (a) What is the value of the original lease contract? (b) If, due to delays, the first 9 payments were deferred, how much money would be needed after 10 payments to bring the lease payments up to date? (c) How much money would be required to pay off the lease after 10 payments? (d) If the lease were paid off after 10 payments, what would the total interest be? (e) How much of the total interest would be due to deferring the first 9 payments? QUESTION 2: Find the future value of the following ordinary annuity. Periodic Payment Payment Interval Term Interest Rate Conversion Period $181.00 3 months 3 7% annually The future value is $ PLEASE ANSWER BOTH QUESTIONS Periodic Payment Payment Interval Term Interest Rate Conversion Period $181.00 3 months 3 years 7% annually.

1. QUESTION 1: A construction company agreed to lease payments of $452.56 on construction
equipment to be made at the end of every month for 9.5 years. Financing is at 11% compounded
monthly.
(a) What is the value of the original lease contract?
(b) If, due to delays, the first 9 payments were deferred, how much money would be needed after
10 payments to bring the lease payments up to date?
(c) How much money would be required to pay off the lease after 10 payments?
(d) If the lease were paid off after 10 payments, what would the total interest be?
(e) How much of the total interest would be due to deferring the first 9 payments?
QUESTION 2: Find the future value of the following ordinary annuity.
Periodic Payment
Payment Interval
Term
Interest Rate
Conversion Period
$181.00
3 months
3
7%
annually
The future value is $
PLEASE ANSWER BOTH QUESTIONS
Periodic Payment
Payment Interval
Term
Interest Rate
Conversion Period
$181.00
3 months
3
years
7%
annually