What is the present value of the following annuity 4731 ever
What is the present value of the following annuity? $4,731 every quarter year at the end of the quarter for the next 11 years, discounted back to the present at 5.09 percent per year, compounded quarterly? round two decimal points
Solution
Rate = 5.09%/4 = 1.2725%
Number of periods = 4 * years = 4* 11 = 44
Annuty = 4371
PV = PMT * ( 1 - ( 1+r)-n)/r = 4731 * ( 1 - ( 1+ 1.2725%)-44/1.2725% = 158646.43
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