Benoit Asset Management guarantees a minimum return of 6% compounded monthly for 2 years. What is the total present value of 24 annual investment deposits of $6,600 each? Use Tables 23-2A and 23-2B or a calculator.

Compounded Monthly

This refers to the process of calculating interest on an initial principal, which also includes all of the accumulated interest from previous periods on a loan or deposit, on a monthly basis.

Present Value

The present value of a future amount of money or sequence of cash flows when discounted at a certain rate of return.

Annual Investment

The total sum of money invested in a particular option or portfolio in a year.