Question
Xiao Ming, an international exchange student is about to rent an apartment in downtown Montreal. He plans to stay in the same apartment for 3
Xiao Ming, an international exchange student is about to rent an apartment in downtown Montreal. He plans to stay in the same apartment for 3 years to finish his study in JMSB. The building manager asks $1,000 per month payable at the beginning of each month, and the rent is expected to increase 5% every year. What minimal amount does Xiao Mings dad has to transfer to Xiao Mings bank account right before Xiao Mings first rent payment if this single transfer covers all the rent payments? Assume money in Xiao Mings bank account earns a 6% interest compounded monthly.
a) $28003.
b) $34647.
c) $35305.
d) $36000
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