Advance Leasing calculates the monthly payments on its three-year leases on the basis of recovering the capital cost of the leased equipment and earning a 9.3% compounded monthly rate of return on its capital investment. What will be the monthly lease payment on equipment that costs $8500?

Compounded Monthly

The calculation of interest on the principal amount where the interest accrued is added to the principal every month, allowing for the accumulation of interest on interest.

Capital Cost

The total acquisition cost of an asset, including the purchase price and costs associated with its acquisition and preparation for use.