What payment does Nick Huntley have to make monthly to a savings fund that returns 8%, compounded quarterly, if he wishes to buy out his partner when she retires in 3 years and his partner expects to receive $100,000 for her shares in their business?

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The correct answer is A.The formula for the future value of an annuity is:FV = PMT * (((1 + r/n)^(n*t)) - 1) / (r/n))where:PMT is the paymentr is the annual interest raten is the number of times per year that the interest is compoundedt is the number of yearsIn this case, we have:FV = $100,000r = 8% = 0.08n = 4 (quarterly compounding)t = 3Substituting these values into the formula, we get:$100,000 = PMT * (((1 + 0.08/4)^(4*3)) - 1) / (0.08/4))Solving for PMT, we get:PMT = $3,152.00Therefore, Nick Huntley has to make monthly payments of $3,152.00 to a savings fund that returns 8%, compounded quarterly, if he wishes to buy out his partner when she retires in 3 years and his partner expects to receive $100,000 for her shares in their business.

What Payment Does Nick Huntley Have to Make Monthly to a Savings