Ballentine Inc. is considering a 6-year, $5,000,000 bank loan in order to buy a new piece of equipment. The loan will be amortized over 6 years with end-of-year payments and has an interest rate of 9%. Alternatively, Ballentine can also lease the equipment for an end-of-year payment of $1,250,000. By how much does the lease payment exceed the loan payment?
A) $110,285
B) $116,090
C) $122,199
D) $128,631
E) $135,401
Correct Answer:
Verified
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