Question

If quarterly payments are made for 15 years, find the value for n in the following present value ordinary annuity formula.
F V = P (StartFraction (1 + t) superscript n Baseline minus 1 over i EndFraction)
a.
-45
b.
-60
c.
-15
d.
StartFraction 15 Over 4 EndFraction

Answer 1

n = number of periods = 15 years × 4 quarters/year = 60.

So n = 60 — (choose option b, noting the sign in the choices is likely a typo).