1. You want to lease a set of golf clubs from Pings Ltd. for $4,000. The lease contract is in the form of 24 months of equal payments at a 12% annual percentage rate (APR). Suppose payments are due in the beginning of the month and your first payment is due immediately. What will your monthly lease payment be?
2. A 10-year annuity pays $900 per year, with payments made at the end of each year. The first $900 will be paid 5 years from now. If the APR is 8% and interest is compounded quarterly, what is the present value of this annuity?