Tracy Collins is contemplating paying five years rent in advance. Her annual rent is $25,200. Calculate the

Question:

Tracy Collins is contemplating paying five years’ rent in advance. Her annual rent is $25,200. Calculate the single sum that would have to be paid now for the advance rent if we assume compound interest of 8 percent.

Compound Interest
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. Thought to have originated in 17th century Italy, compound...