Present value of lease contract is =$6820.56
Annuity due is a type of annuity that contains a payment that is immediately due at the beginning of each term. An conventional annuity, in which payments are received at the end of each quarter, might be compared to annuity due. Rent is a classic example of an everyday annuity payment because it is paid at the beginning of each month.
Rent, lease, and insurance payments are a few instances of annuity due payments, which are made to pay for services rendered in the time after the payment. An annuity is an agreement that you have with an insurance provider that calls for regular payments to be made by the insurer to you, either now or in the future.
Present value of lease contract=600*PV of annuity due(12%,12 months)
=600*11.3676
which is equal to =$6820.56
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