Find the present value per hour of studying

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Question: John signs up for a class preparing for a professional actuarial examination. John expects to spend 300 hours studying for the examination. For passing the examination, John anticipates he will earn an additional $150 per month payable at the end of each month starting six months from today. John plans to retire exactly 30 years and six months from today. Using 6% nominal annual interest rate compounded monthly, find the present value per hour of studying assuming that John passes this examination. Even though the 300 hours of studying are spread evenly and continuously over the first six months, just assume that they all happen at time 0 and calculate the value at time 0.

Reference no: EM131794259

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