When tax certificates are sold at premium prices, it is possible to lose money on the investment if the delinquent property owner redeems quickly. This question illustrates how. Suppose an investor purchases a $6,000 (PV) tax lien certificate at auction by bidding a 6% premium, or $6,0001.06=$6,360. The certificates issued by the taxing authority for this year all earn interest at a rate of 9%(I/Y) compounded monthly. Interest accrues on the face amount of the certificate, not the premium. Calculate the amount of money the investor will receive (FV) if the property owner were to redeem the certificate in just 3 months (N)