Kristy Has to Make Rental Payments of $1000 at the Start

question 25

Multiple Choice

Kristy has to make rental payments of $1000 at the start of every month,throughout the four-year duration of her university course.Her university fees are $4000 to be paid at the start of each year.She earns $1500 per month (paid at the end of each month) from a part-time job.Assume an interest rate of 8% p.a.and that she keeps the part-time job for the next four years.How much money,in present value terms,can she withdraw each month for the next four years?

• A)$144
• B)$126
• C)$55
• D)$177