Anna receives $150 a month for four years while she attends college to earn a bachelor's degree. At a 6.25 percent discount rate compounded monthly, what are these payments worth to you on the day she enters college? O $4,800.00 O $6.355.98 $4,608.87 O $4,201.20 O $6.789.92

Anna receives $150 a month for four years while she attends college to earn a bachelor's degree. At a 6.25 percent discount rate compounded monthly, what are these payments worth to you on the day she enters college? O $4,800.00 O $6.355.98 $4,608.87 O $4,201.20 O $6.789.92

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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Question

Anna receives $150 a month for four years while she attends college to earn a bachelor's degree. At a 6.25 percent discount
rate compounded monthly, what are these payments worth to you on the day she enters college?
O $4,800.00
$6,355.98
O$4,608.87
O $4,201 20
O $6.789.92

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