Assume the Prevailing Interest Rate Is 8% Per Annum

question 5

Multiple Choice

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.

• A)$1,063
• B)$1,789
• C)$3,568
• D)$2,484

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Definitions:

Digital Inputs

Inputs that receive digital signals (on or off) from sensors or switches to a control system or digital circuit.

Motor Defined Input

Specific inputs, like voltage and current types, defined by a motor's design for optimal performance.

Magnetic Motor Starters

A type of motor starter that uses an electromagnetic coil to operate the motor's on/off control mechanism.