Sarah wants to put aside an amount of money sufficient to provide an income of $450 a month for a period of 5 years. The interest rate is at 15% compounded monthly per annum.
a) What sum of money should Sarah set aside if the first payment is to be received one month from now?
b) What sum of money should Sarah set aside if the first payment is to be received immediately?
c) What sum of money should Sarah set aside if the first payment is to be received 2 years from now?