Homework Help: Finance

Posted by Dell on Monday, July 25, 2011 at 12:10pm.

Nancy Bellow promised her son she would pay him $600 a quarterly for four years.If Nancy can invest her money in a 6% ordinary annuity, how much would she need to invest today

Finance - Reiny, Monday, July 25, 2011 at 1:21pm
i = .06/4 = .015
n = 4x4 = 16

Present Value = 600( 1 - 1.015^-16)/.015
= 8478.88

Answer this Question

Related Questions

math - Ed Long promised to pay his son $400 semiannually for 12 years. Assume Ed...
Math - Ed long promised to pay is son $400 semiannually for 12 years. Assume Ed ...
Finance - How do I calculate a present value? 7,000 in 5 years at a quarterly ...
Finance - 21. Ogden wants to save for a trip to Australia. She will need $12,000...
Finance - 14.You need to have $15,000 in five years to pay off a home equity ...
Business Finance - 21.Ogden wants to save for a trip to Australia. She will need...
Finance - 23.You plan to save $1,400 for the next four years, beginning now, to ...
Finance - Present value, How do I calculate the present value of: 7,000.00 in 5 ...
math help plz! - When Cody's son was born, he put $4,500 in an investment ...
Math! plz help! - When Cody's son was born, he put $4,500 in an investment ...

For Further Reading

First Name:
School Subject:
Answer: