Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:Paying rent and insurance premiums are examples of an annuity due. Suppose you have to pay a monthly rents of $1,800 for an apartment studio in
LA at the beginning of every month. The annual interest rate is 4%. What comes closest to the present value of the monthly rents if you intend to live
there for 24 months and the rent is not expected to change?
28540
45050
43000
41600
000
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