What is the present worth of the lease purchase

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Reference no: EM131925781

1. Craig is saving money to buy a house in Daly City. He needs $800,000 to buy a house in 10 years. He decides to make a deposit at the end of every month into an account that pays 3.7% compounded monthly. How much does he need to deposit into this account every month in order to have $800,000 after 10 years?

2. A robotics system will be purchased for a factory. The lease-purchase cost is $ 150000 per year. Warranties will also be purchased. The warranties start at $ 25000 in year 5 and increase by 20000 per year through the end of the lease. What is the present worth of the lease purchase?

Reference no: EM131925781

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