Math Problem Statement
Find the present value of an ordinary annuity of 60 payments of $5200 each made quarterly and earning interest at 2.5%/year compounded quarterly. (Round your answer to the nearest cent.)
Solution
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Math Problem Analysis
Mathematical Concepts
Annuities
Present Value
Interest Compounding
Algebra
Formulas
Present Value of Annuity: PV = P × [(1 - (1 + i)^(-n)) / i]
Theorems
Present Value Annuity Formula
Suitable Grade Level
Grades 11-12, College Level
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