You plan to visit France for 6 months, (starting next month). You will spend $7,558 in...

You plan to visit France for 6 months, (starting next month). You will spend $7,558 in each of those months. How much do you need to invest today to just fund your visit if your investments earn 3.08% APR (compounded monthly)?

Solutions

Expert Solution

Nper = 6
PMT = $7558
Rate = 3.08% / 12
FV = 0

Present value can be calculated by using the following excel formula:
=PV(rate,nper,pmt,fv)
=PV(3.08%/12,6,-7558,0)
= $44,943.40

The amount you need to invest today = $44,943.40

jeff jeffy answered 2 years ago

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