Field Construction agreed to lease payments of $642.79 on construction equipment to be made at the end of each month for three years. Financing is at 9% com- pounded monthly.
(a) What is the value of the original lease contract?
(b) If, due to delays, the first eight payments were deferred, how much money would be needed after nine months to bring the lease payments up to date?
(c) How much money would be required to pay off the lease after nine months (assuming no payments were made)?
(d) If the lease were paid off after nine months, what would the total interest be?
(e) How much of the total interest would be due to deferring the first eight payments?