Question

Find the present value of an ordinary annuity with regular quarterly payments worth P1000 at 3% annual interest rate compounded quarterly at the end of 4 years

Answer 1

Answer:

Here,

P = ₹1000

R = 3% compounded quarterly

T = 4 yrs

Amount = P ( 1+ r / 4* 100 )^4t )

= ₹1000 ( 1+ 3/400)^16)

Answer 2

Answer:

P15,024.31

Step-by-step explanation:

1 - Use this formula to get the PV:

2 - PV=0; P=1000; R=0.03/4; N=4*4; P*(((1 + R)^N - 1)*((1 + R)^-N)* R^-1)

3 - PV==P15,024.31 - PV of the annuity