Question: The payments required on a contractual obligation are $500 per month. The contract was purchased for $13,372 just before a regular payment date. The purchaser

The payments required on a contractual obligation are $500 per month. The contract was purchased for $13,372 just before a regular payment date. The purchaser determined this price based on his required rate of return of 9.75% compounded monthly. How many payments will he receive?

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The purchase price is the present value of the remaining payments discounted at the investors required rate of return Viewed from the date of purchase the payments form a simple annuity due with PV due 13372 PMT 500 i 97512 8125 The number of remaining payments is The investor ... View full answer

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