Making lease payments that are equivalent to annual payments, Macroeconomics

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A company can lease an asset for the next five years by making lease payments that are equivalent to annual payments of $3,000 at year 0, $6,000 at year 1, $7,000 at year 2, $7,000 at year 3, and $4,000 at year 4. Use a 12% minimum discount rate (interest rate), to determine:

• Year 0 present worth of the lease payments,
• Year 4 future worth of the lease payments, and
• Equivalent series of end-of-year payments for years 1 through 4.


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