Question

Hilda paid 75,000 as a down payment for a vacant lot and agreed to pay 55,000 at the end of every quarter for eight (8) and a half years to complete the purchase of the lot. If the money is worth 9.5% compounded quarterly, what is the equivalent cash price of the lot?

Answer 1

75000 + 66*55000 = 3,705,000
P(1 + .095/4)^66 = 3705000
P = $787,027

Answer 2

75000 + 34*55000= 75000 + 1870000 = 1945000.