+0

# math

0
1
433
3

Find the amount to be paid of a present value of 15,000 payable every three months for 10years, if the money is worth 5% compounded quarterly.

Mar 14, 2022

#1
+36719
+1

This, I believe is an ordinary annuity

PV = C * [  1 - (1+i)-n ] / i

PV = present value        C = 15 000       i = interest per period = .05/4         n = periods = 4 x 10 = 40

pluggiing in these numbers shows PV = ~  \$ 469904

Mar 14, 2022
#2
0

Hi EP: I think this is an ordinary annuity, with a PV of \$15,000, from which you would receive quarterly payments @ 5% comp. quarterly for 10 x 4 ==40 quarters. If that is right, then the quarterly payments I calculate come to ==\$478.82 for 10 years, or 40 quarters. However, the question is vey vague!

Mar 14, 2022
edited by Guest  Mar 14, 2022
#3
+36719
0

Yah.... I believe you are correct....   the wording was a bit clumsy, so I included the equation to calulate ( as you did) ...

Just put in 15000 for PV    and then calculate  'C'

ElectricPavlov  Mar 14, 2022
edited by ElectricPavlov  Mar 14, 2022