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.)
- 4 weeks ago
How do you put that in a calculator. I don't understand
- SlumlordLv 74 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.