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?

Question

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?

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