You may assume the first deposit is made at the end of the first period.

Howard is saving for a long holiday. He deposits a fixed amount every month in a bank account with an EAR of 12.4%. If this account pays interest every month then how much should he save from each monthly paycheck in order to have $8,000 in the account in four years' time? A. $184 OB. $131 OC. $105 OD. $210 A florist is buying a number of motorcycles to expand its delivery service. These will cost $77,000 but are expected to increase profits by $2,500 per month over the next four years. What is the payback period in this case? A. 23.1 months B. 12.32 months C. 30.8 months D. 18.48 months