There are two options to pay your insurance policy: 1) One payment of of $651. 2) An initial payment of $139.41 and ten monthly payments of $61.29. What would be the return on your money if you chose option 1?
(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 06/04/2012 problem:
(N=144,PV=30,885,PMT= -279.63,FV=0) I=4.61%