Final answer:
The value of the payments today for a rented warehouse with monthly rent of $12,000 for the next 9 years at an APR of 6.36%, compounded monthly is $85,840.32.
Step-by-step explanation:
To find the value of the payments today, we can use the present value formula. The formula is:
PV = PMT(1 - (1 + r/n)^(-n*t))/(r/n)
In this formula, PV is the present value of the payments, PMT is the monthly payment, r is the annual interest rate, n is the number of compounding periods per year, and t is the number of years.
In this case, the monthly payment is $12,000, the annual interest rate (APR) is 6.36% (convertible monthly), n is 12 (compounded monthly), and t is 9 (years).
Substituting the values into the formula, we get:
PV = 12000(1 - (1 + 0.0636/12)^(-12*9))/(0.0636/12)
Simplifying the expression gives PV = $85,840.32.
Therefore, the value of the payments today is $85,840.32.