Hi to you,
I don't know how to solve this problem:
Smith Wishes to buy a TV set and is offered a time payment plan whereby he makes 24 monthly payments of 30 each starting now. Smith wants the payments to start in 2 months rather than now. If interest is at a one-month interest rate of 1%, what is the present value now of the savigs to Smith if the seller agrees to Smith's terms?
What I made :
First find what he would have paid :
Secondly find what he would pay if the seller agrees :
Then one minus the other and bring back to time 0 but this is:
771,49 - 683,44 = 88,05,
Which is not the good answer.
Any help would be greatly appreciated!