our grandmother will be gifting you $150 at the end of each month for four years while you attend college. At a discount rate of 3.7 percent, what are these payments worth to you on the day you enter college? A) $6,201.16 E) $6,870.23 B) $6,682.99 C) $6,539.14 D) $6,608.87

Option B. $6,683

Explanation:

We can calculate the  payments worth to you when you enter college by multiplying the annual amount by an annuity factor

Annuity factor can be calculated for four  years as follows

DATA

Discount rate = r = 3.7%/12 = 0.00308

No. of months = 12 x 4 = 48 months

Monthly payment = $150

Future value =?

Future value = Annual payments x annuity factor

Future value = $150 x 44.5567795037(w)

Future value = $6,683

Workings

Annuity factor =

Annuity factor =

Annuity factor =44.5567795037

answer; // there are violations that can cause injuries or death;

all of them make sense but, i would have to say ask someone who has been there/or lives there, and/or read recent newspapers from that city.

hope this !