A mortgage broker offers to sell you a loan contract that would provide you with end-of-month payments of $900 for the next years. In addition, at the end of the year period, you will also receive a lump sum payment of $37,886. What should you pay for the contract, if you require a rate of return of 7.2% compounded monthly?

Question

A mortgage broker offers to sell you a loan contract that would provide you with end-of-month payments of $900 for the next  years. In addition, at the end of the  year period, you will also receive a lump sum payment of $37,886. What should you pay for the contract, if you require a rate of return of 7.2% compounded monthly?

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The Answer of A mortgage broker offers to sell you a loan contract that would provide you with end-of-month payments of $900 for the next  years. In addition, at the end of the  year period, you will also receive a lump sum payment of $37,886. What should you pay for the contract, if you require a rate of return of 7.2% compounded monthly?

A Mortgage Broker Offers to Sell You a Loan Contract