I need help please!!?

Rene has a structured settlement that pays him $2,600 at the end of each month for 10 years. If the current interest rate is 5.875% compounded monthly, what is the present value (in dollars) of the payments? (Round your answer to the nearest cent.)


2 Answers

  • 4 weeks ago

    How do you put that in a calculator. I don't understand

  • 4 weeks ago

    You need to find out how much money, invested at 5.875% you would need to get paid $2600 per month. So (ignoring compound interest) the equation is:

    (.05875 * x) / 12 = 2600

    You figure it out from here, solve for x.

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