The correct answer is D. N=3; 1%=2.4; PV; PMT-355; FV=0 P/Y=12 C/Y=12; PMT:END.
1. Calculate the present value (PV) of the given expression using a financial calculator or spreadsheet.
2. Compare the PV to the given answer choices.
Here is a step-by-step solution:
1. Calculate the PV of the given expression.
PV =
![$355 * [(1 + 0.002)^36 - 1] / (0.002 * (1 + 0.002)^38)](https://img.qammunity.org/2024/formulas/mathematics/high-school/vm2thb5p6s8c9jab8ebg3flwn5und02tal.png)
Using a financial calculator or spreadsheet, we can calculate that the PV of the expression is $340.37.
2. Compare the PV to the given answer choices.
The only answer choice that has a PV of $340.37 is D. N=3; 1%=2.4; PV; PMT-355; FV=0 P/Y=12 C/Y=12; PMT:END.
The given expression represents a future value annuity, which is a series of equal payments made at the end of each period for a specified number of periods. The present value of an annuity is the amount of money that must be invested today in order to receive the future payments.
To calculate the PV of an annuity, we can use the following formula:
PV =
![PMT * [(1 - (1 + I)^-N) / I]](https://img.qammunity.org/2024/formulas/mathematics/high-school/uo143jw0836ugj3we3nfk1691pvgembuki.png)
where:
PV is the present value
PMT is the payment amount
I is the interest rate per period
N is the number of periods
In the given problem, we are asked to find the combination of values for N, I%, and PMT that will return the same PV as the given expression.
We can start by calculating the PV of the given expression using a financial calculator or spreadsheet. We find that the PV is $340.37.
Next, we can compare the PV to the given answer choices. The only answer choice that has a PV of $340.37 is D. N=3; 1%=2.4; PV; PMT-355; FV=0 P/Y=12 C/Y=12; PMT:END.
This problem is a good example of how to use the TVM Solver on a graphing calculator to solve financial problems. The TVM Solver can be used to calculate the PV, FV, PMT, I%, and N of any annuity or loan.