Find the present value of $31,000 due in 4 yr at the given rate of interest.
(a) 6%/year, compounded quarterly
$ ?
(b) 3%/year, compounded quarterly
$ ?
Its been awhile but here you go:
(a)53320
31000*.06=1860
1860*12 (12 is 3 quarter per year for 4 years)=22320
31000+22320=53320
(b)34720
31000*.03= 930
930*4=3720
31000+3720=34720