1. You are considering leasing a small warehouse for 3 years. The lease requires monthly payments of $448.00. Somewhere on the lease paperwork you notice a statement to the affect that you will be charged an nominal rate of4.800% gnore the turn-in value or salvage value of the warehouse. What is the value of the lease? (Draw a cash flow diagram)
2. Today you deposit $90,000 of your company's money in an investment account that pays 7.97% pa. compounded weekly. How much money would you have in that account 11 months from now? Do not assume there are 4 weeks per month. There are 52 weeks per year.
3. How many years will it take for your savings account to accumulate $1m if it pays 4% interest per year compounded semiannually and you deposit S10k every 6-months at the end of the 6-month period?