You want to lease a set of golf clubs from Pings Ltd. The lease contract is in t

Question

You want to lease a set of golf clubs from Pings Ltd. The lease contract is in the form of 12 equal monthly payments at a 8.90 percent stated annual interest rate, compounded monthly. Because the clubs cost $1,900 retail, Pings wants the PV of the lease payments to equal $1,900.

Suppose that your first payment is due immediately. What will your monthly lease payments be? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

You want to lease a set of golf clubs from Pings Ltd. The lease contract is in the form of 12 equal monthly payments at a 8.90 percent stated annual interest rate, compounded monthly. Because the clubs cost $1,900 retail, Pings wants the PV of the lease payments to equal $1,900.

Explanation / Answer

This is annuity DUE problem.

As we know: PV of an annuity DUE = PMT * [{1

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