Haystack, Inc.manufactures machinery used in the mining industry.On January 2, 2011 it leased equipment with a cost of $200,000 to Silver Point Co.The 5-year lease calls for a 10% down payment and equal annual payments at the end of each year.The equipment has an expected useful life of 5 years.If the selling price of the equipment is $325,000, and the rate implicit in the lease is 8%, what are the equal annual payments?

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The Answer of Haystack, Inc.manufactures machinery used in the mining industry.On January 2, 2011 it leased equipment with a cost of $200,000 to Silver Point Co.The 5-year lease calls for a 10% down payment and equal annual payments at the end of each year.The equipment has an expected useful life of 5 years.If the selling price of the equipment is $325,000, and the rate implicit in the lease is 8%, what are the equal annual payments?