Present value of lease arrangement with interest rate

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Reference no: EM131994094

Please show all your work step by step and all the formula that is used. This is my 3rd time posting as people do not explain what they are doing. Therefore, do not answer if you can't explain.

1. What is the present value (PV) of a 12-years lease arrangement with an interest rate of 7.5% that requires annual payments of $4250. Per year with first payment being due now?

2. A recent college graduate hopes to have $200000. Saved in their retirement account 25 years from now by contributing $150 per month in a 401(k) plan. The goal is to earn 10% annually on the monthly contribution. Will they have $200000. At the end of the 25 years?

Reference no: EM131994094

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