A Large Ontario Municipality Signed a Four-Year Lease on Paving

Multiple Choice

A large Ontario municipality signed a four-year lease on paving equipment where payments of $71,698 are made at the beginning of each year with an interest rate of 10% per year, compounded annually. By the end of the contract, what will be the total cost to the city?

A) $366,025
B) $332,750
C) $337,697
D) $371,467
E) $383,550