When Dan signed a two-year contract with Hard Floors Inc. as a manager, the company allowed reimbursement of $600 at the end of every month for his car expenses. At the time the contract was signed, money was worth 7.68% compounded monthly.
(a) What value did the expense reimbursement provision have when the contract was signed?
(b) What is the outstanding value of the reimbursement after the eighth payment?