Arithmetic Ability
Compound Interest

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Q.

Mr. and Mrs. Espedido’s property taxes, amounting to $2450, are due on July 1.What amount should the city accept if the taxes are paid eight months in advance and the city can earn 6% compounded monthly on surplus funds?

View Answer

Correct choice: A

Explanation:

i=j/m PV= FV(1+ i)^- n
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