Bill Garnett, an exchange student is about to rent an apartment in downtown Montreal. He plans to stay in the same apartment for 3 years to finish his study in JMSB. The building manager asks $1.500 per month payable at the beginning of each month, and the rent is expected to increase 4.5% every year. 

What minimal amount does Bill's dad has to transfer to Bill's bank account right before Bill's first rent payment if this single transfer covers all the rent payments? Assume money in Bill's bank account earns a 5% annual quoted rate interest compounded monthly.

Answer rating: 100% (QA)

To calculate the minimal amount that Bills dad needs to transfer to his bank account we need to find ... View the full answer