Problem: In Question, suppose that not only will the interest be compounded monthly, but the payments will also arrive monthly in the amount of $1,666.67 per month (the first payment to arrive in one month)?
Question: A real estate investor feels that the cash flow from a property will enable her to pay a lender $20,000 per year, at the end of every year, for eight years. How much should the lender be willing to loan her if he requires a 7.5% annual interest rate (annually compounded, assuming the first of the eight equal payments arrives one year from the date the loan is disbursed)?