What is the present value of the obligation

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Reference no: EM131886247

Mutt Rescue plans to lease some new equipment. The lease calls for payments of $750 per year and is based on 10 annual payments and a 6 percent interest rate. As an accommodation to the not-for-profit organization, the bank has agreed to lease payments at the end of each year rather than the beginning, which is more common. What is the present value of the obligation? How much did the bank lose by allowing payments at the end of each year rather than at the beginning?

Reference no: EM131886247

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