Find the present value of an ordinary annuity with deposits

Find the present value of an ordinary annuity with deposits of $7,576 quarterly for 9 years at 4.8% compounded quarterly. What is the present value?

Solution

PV = PMT*[1 - (1/(1 + r/n)^(n*t))]/(r/n)

PMT = 7576

r = 4.8% = 0.048

n = 4

t = 9 yrs compounded quarterly

n*t = 9*4 = 36 times

PV = 7576*[1 - (1/(1 + 0.048/4)^36)]/(0.048/4)

PV = $220410.50

Find the present value of an ordinary annuity with deposits of $7,576 quarterly for 9 years at 4.8% compounded quarterly. What is the present value?SolutionPV =

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