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Each Quarter for the Next 10 Years,Carmen Lector Will Deposit

Question 98

Essay

Each quarter for the next 10 years,Carmen Lector will deposit $1,000 into an investment fund that pays 8% compounded quarterly.
a.What is the present value of those investment payments if the first of 40 deposits are made at the end of each quarter?
b.What is the present value of those investment payments if the first of 40 deposits are made at the beginning of each quarter?

Correct Answer:

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a.$1,000 × 27.35548 (present v...

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