Assume you are considering the consolidation of all your electronic services with one company. By purchasing a digital phone from AT&T wireless, you can buy wireless e-mail and fax services for $6.99 per month. For $14.99 per month, you will get unlimited web access and personal organization functions. For a 2-year contract period, what is the future worth of the difference between the services at an interest rate of 12% per year, compounded monthly?
What will be an ideal response?
F = (14.99 – 6.99)(F/A,1%,24)
= 8(26.9735)
= $215.79
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