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