Calculator Problem – 09/26/2011

Ray is renting a room in a house for $500 a month.  He negotiates to pay 5 months in advance and get the 6 month free.  What is his 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 09/12/2011 problem:

(N=180,I=5,PV=45,000,FV=0)  PMT= -$355.86