SOLUTION: I took out a lease on $2000.00 worth of equipment for tow years. I am being charged5.25% interest annually. What is the interest paid and total amount I paid on the lease.

Question 176849: I took out a lease on $2000.00 worth of equipment for tow years. I am being charged5.25% interest annually. What is the interest paid and total amount I paid on the lease.
Answer by gonzo(654) (Show Source): You can put this solution on YOUR website!
if you made no payments until the end of the two years and if the interest was compounded annually, you would have paid a total of:
2000*(1.0525)^2 = 2215.5125
the interest would have been:
2215.5125 - 2000 = 215.5125
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