Question
Kristy has to make rental payments of $1,000 at the start of every month, throughout the fouryear duration of her university course. Her university fees
Kristy has to make rental payments of $1,000 at the start of every month, throughout the fouryear duration of her university course. Her university fees are $4,000 to be paid at the start of each year. She earns $1,500 per month (paid at the end of each month) from a part-time job. Assume a quoted interest rate of 8% per annum with monthly compounding and that she keeps the part-time job for the next four years. How much money, in present value terms, can she withdraw each month for the next four years where withdrawals are at the end of each month?
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