You’ve just signed a twelve-year ….

Question

You’ve just signed a twelve-year lease on a property. At the beginning of each year, starting immediately, you pay $1200. If interest rates are at 3%, how much in today’s dollars will you have paid out by the time you make your final payment

Answer 1

I = (P)(R)(T)

(1200)(1.03)(12) = $14,832