Answer:
$14,621.99
Explanation:
Calculation to determine what would be the amount of the annual rental payments Sage Hill demands of MTBA,
Let X be the annual lease payments
Annuity factor of 8% for 9 years = 6.74664
Discounting factor of 8% at beginning of 9 years = 0.54027
Annual Rental Payments=$100,000 = (X * 6.74664) + ($2,500 * 0.54027)
Annual Rental Payments=$100,000 = (X * 6.74664) + $1350.675
Annual Rental Payments=(X * 6.74664) = $100,000 - 1,350.675
Annual Rental Payments=X = 98,649.325 / 6.74664
Annual Rental Payments=X = $14,621.99
Annual Rental Payments=X = $14,621.99
Therefore, what would be the amount of the annual rental payments Sage Hill demands of MTBA , is $14,621.99
