Question

DO... - Duuyu DUS YUP SMT 326 S20 Sections 02 and 07 est: Quiz Chapters 4,5 & 6 ais Question: 1 pt 28 of 30 (1 complete) What is the present value (PV) of an investment that pays $60,000 every year for four years if the interest rate is 7% APR compounded quarterly? O A. $202,383 O B. $242,859 O c. $222,621 OD. $263,097 Click to select your answer

Answer 1

Conversion of quarter rate to annual rate:-

=EFFECT(7%,4)

=7.186%

Present value is calculated using the PV function as follows:-

=PV(rate,nepr,pmt)

=PV(7.186%,4,60000)

=202383