Answer to Question #316293 in Economics for Helen

Question

A student will receive P3,000 at the beginning of each 3 months for 4 years. What is the sum of this annuity at the end of the 4th year if the interest rate is 6% compounded quarterly?

Ans. 54,604.07

Answer 1

$P=C*{1-{1 \over (1+r)^n}\over r}=3,000*{1-{1 \over (1+0.06)^12}\over 0.06}=$ 25,151.53