Calculator Problem – 04/09/2012

You are currently making monthly payments of $200.  The person you are paying agrees to take a lump sum of 5 payments now and give you credit for the next 6 payments.  What is your return?

(The answer will be posted with the new calculator problem in 2 weeks. Or if you can’t wait that long, you can go to http://www.facebook.com/pages/Gary-Johnston-Seminars/111368472221424 for the answer.)

Answer to 03/26/2012 problem:

(N=48,PV=-8000,PMT=250,FV=0) I=21.53%