Calculator Problem – 07/14/2014

You have been paying a vendor $140 every year, for several years, for a special service.  Recently, the vendor had a special offer that you can buy two years of service if you pay $225 today.  What would be the return on your money (monthly compounding) if you took the offer?

(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 https://www.facebook.com/garyjohnstonseminars for the answer.)

Answer for 06/30/2014 problem:

(N=360,I=8,PV=0,PMT= -300) FV= 447,107.83