A lease involves payments of $1,000 per month for two years. The payments are made at the

Question:

A lease involves payments of $1,000 per month for two years. The payments are made at the end of each month. The lease also involves a guaranteed residual value of $10,000 to be paid at the end of the 2-year period. The appropriate interest rate is 12% compounded monthly. Compute the present value of the minimum payments.