Your parents are giving you $205 a month for 4 years while you are in college. At an interest rate of .48 percent per month, wha

Question

3 years ago

14

t are these payments worth to you when you first start college

1 answer:

luda_lava [24] · Answer 1 · 2021-12-27T13:15:53+03:00

Answer:

$8,770.00

Explanation:

In this question we use the present value formula i.e shown in the attachment below:

Data provided in the question

Future value = $0

Rate of interest = 0.48%

NPER = 4 years × 12 months = 48 months

PMT = $205

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the answer would be $8,770.00