Question

Find the present value of an ordinary annuity of $600 payments each made quarterly over 5 years and earning interest at 4% per year compounded quarterly.
quarterly rate = .04/4 = .01
number of payments = 5(4) = 20

PV = payment (1 - (1+i)^-n)/i
600( 1 - 1.01^-20 )/.01
= $10837.33

Related Questions

find the present value of ordinary annuity payments of 890 each year for 16 years at 8% compounded... Find the amount of an ordinary annuity for 5 years of quarterly payments of $2,200 that earn interes... Find the present value of an ordinary annuity of $500 payments each made quarterly over 6 years and...