Question

Tony saved enough money to place $125,500 in an investment generating 9.25% compounded monthly. He wants to collect a monthly income of $1,350, at the beginning of each month, for as long as the money lasts. How many months will Tony have this income coming to him?

A.165.
B.145.
C.192.
D.162.

Answer 1

Option D

Step-by-step explanation:

Begin Mode

N = ?

i = 9.25 12 = 0.7708

Principal = $125,500

PMT = $1,350

FV = 0

161.7058

= 162 (nearest whole number)