Return on its investment problem

Reference no: EM13147998

Present value of an ordinary annuity due.

Jill Morris is presently leasing a small business computer from Eller Office Equipment Company. The lease requires 10 annual payments of $4,000 at the end of each year and provides the lessor (Eller) with an 8% return on its investment. You may use the following 8% interest factors:

9 Periods 10 Periods 11 Periods

Future Value of 1 1.99900 2.15892 2.33164

Present Value of 1 .50025 .46319 .42888

Future Value of Ordinary Annuity of 1 12.48756 14.48656 16.64549

Present Value of Ordinary Annuity of 1 6.24689 6.71008 7.13896

Present Value of Annuity Due of 1 6.74664 7.24689 7.71008

Reference no: EM13147998

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