The answer is 3 and I'm just going to keep typing because I can't post under 20 characters
Yes. For example x=-1 and y=-1/2
The Present value of an annuity is given by PV = P(1 - (1 + r/t)^-nt)/(r/t)
where: P is the monthly payment, r is the annual rate = 7% = 0.07, t is the number of periods in one year = 12 and n is the number of years = 3.
18,000 - 6,098 = P(1 - (1 + 0.07/12)^-(3 x 12)) / (0.07/12)
11,902 = P(1 - (1 + 0.07/12)^-36) / (0.07/12)
P = 0.07(11,902) / 12(1 - (1 + 0.07/12)^-36) = 367.50
Therefore, monthly payment = $367.50
Divide the gross income by 12 to find his monthly pay:
29,700 / 12 =$2,475 per month.
Multiply his monthly pay by 7%:
2,475 x 0.07 = $173.25 into his 401(k) per month.
The answer is A.
