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: