Question
A student wishes to sublet his apartment for 6 months, while he is away on exchange. The cost is $400 a month; payable at the
A student wishes to sublet his apartment for 6 months, while he is away on exchange. The cost is $400 a month; payable at the beginning of each month. Suppose that the person subletting wants to make a lump-sum payment today rather than paying monthly. If the interest rate is 4% compounded monthly, how much should the payment be?
The payment should be of $
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CFP Board Financial Planning Competency Handbook
Authors: CFP Board
2nd Edition
1119094968, 978-1119094968
