Question
You plan on going on a 3 month vacation 8 months from now. You can pay $4,000 per month during the vacation, or you can
You plan on going on a 3 month vacation 8 months from now. You can pay $4,000 per month during the vacation, or you can pay $12,000 today.
Which alternative should you take and how much does it save you in present value terms if your investments earn 3.00% APR (compounded monthly)?
*If you could, please indicated what numbers go with what keys on a financial calculator (N,I/Y,PV,PMT,FV)
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ISE Essentials Of Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus
12th International Edition
1265450099, 9781265450090
