Question

Using technology, determine the present value given that you make quarterly payments of $1,635 at 4.2% compouded quarterly over a 3 year period. Round your answer to the nearest cent.

Answer 1

Pv=pmt [(1-(1+I/k)^(-kn))÷(I/k)]
Pv=1,635×((1−(1+0.042÷4)^(−4×3))÷(0.042÷4))=18,344.05