### Accumulated lease amounts over a period of time

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##### Reference no: EM13827028

Problem:

The Lancer Leasing Company has agreed to lease a hydraulic trencher to the Chavez Excavation Company for \$25,000 a year over the next eight years. Lease payments are to be made at the beginning of each year. Assuming that Lancer invests these payments at an annual rate of 10 percent, how much will it have accumulated by end of the eighth year?

Summary of question:

This question basically belongs to Finance as well as it explains about computations of accumulated lease amounts over a period of time and the total accumulated amount at the end of the period.

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