If you had 20 annuities that had a quarterly cashflow period

If you had 20 annuities that had a quarterly cashflow period and you were using a nominal interest rate of 6% compounded monthly, what i value would you use in the (P/A, i, N) equation if you were trying to find the present worth of the series? 1.51% 6% 0.5% 0.9911

Solution

And 6%

Interest. 6%

Compounding - quarterly i.e. 4 times

Formula

R=[1+1/n]^n-1

R- [1+1/4]^4-1

R-0.0613 or 6.13% or 6%