Raymond financing leases airplanes to airline companies. raymond has just signed a 20-year lease agreement that requires annual year-end lease payments of $900,000. what is the present value of the lease using a 10% interest rate?

7662207.35

Explanation:

We are asked to find the present value of a 20 years annuity at rate equal 10%

Remember:

on present time: power is negative and the 1 comes first

on future value: the power is positive and comes first then you subtract 1

24 years, i believe is the correct answer.

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.