If I Can Invest at 6% Per Annum Compounded Monthly,how

question 8

Multiple Choice

If I can invest at 6% per annum compounded monthly,how much will I need to invest today in order to provide an allowance of $200 per month for two years to a child commencing at boarding school two years from now? (Assume that the first monthly allowance is paid exactly two years from now.)

• A)$4 512.57
• B)$4 023.51
• C)$4 400.14
• D)$8 516.06

---

Definitions:

Efficient Transport

The optimized movement of substances or objects from one location to another, often characterized by reduced consumption of resources and increased speed.

Micrometer

A unit of length in the metric system equal to one millionth of a meter, also used as a device for precise measurements of small distances.

Nanometer

A unit of length in the metric system, equal to one billionth of a meter, often used to measure wavelengths of light and dimensions of molecules.

Picometer

A unit of length in the metric system, equal to one trillionth of a meter, used to measure extremely small distances.