(Answered) Assume the prevailing interest rate is 8 per annum a 4-year

Finance

Assume the prevailing interest rate is 8% per annum. A 4-year lease agreement requires you to pay $2,000 up front , followed by annual payments of $1,800 a year for the first two years and $1,500 a year in the last year. What would the payment on a 4 -year lease with a constant annual payment, with the first payment due immediately, have to offer for you to be indifferent between the two lease options? Round your answer to the nearest dollar.

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