Martha receives $200 on the first of each month. Stewart receives $200 on the last day of each month.

Excel File

Martha receives $200 on the first of each month. Stewart receives $200 on the last day of each month.

 Both Martha and Stewart will receive payments for 30 years. The discount rate is 9 percent, compounded monthly.

What is the difference in the present value of these two sets of payments?

PMT 200

n 30 *12

i 0.09

PV $25,042.80 start =PV(D8/12,D7*12,-200,,1)

$24,856.37 end =PV(D8/12,D7*12,-200,,0)

Dif $186.423 =D10-D11