Question

Can someone break this down into small steps to follow the math. I have looked at other examples and am still having trouble following the math

You have successfully started and operated a company for the past 10 years. You have decided that it is time to sell your company and spend time on the beaches of Hawaii. A potential buyer is interested in your company, but he does not have the necessary capital to pay you a lump sum. Instead, he has offered $700,000 today and annuity payments for the balance. The first payment will be for $240,000 in three months. The payments will increase at 1.7 percent per quarter and a total of 30 quarterly payments will be made. If you require an EAR of 10 percent, how much are you being offered for your company?

Answer 1

No of Quarterly Payments	Annuity Amount	Disc. Factor@ 9.645%	Present Value of Annuity Amount
1	240000.00	0.9940611	238574.67
2	244080.00	0.9881575	241189.48
3	248229.36	0.9822889	243832.95
4	252449.26	0.9764552	246505.4
5	256740.90	0.9706562	249207.13
6	261105.49	0.9648915	251938.48
7	265544.29	0.9591612	254699.76
8	270058.54	0.9534648	257491.31
9	274649.53	0.9478023	260313.45
10	279318.58	0.9421734	263166.53
11	284066.99	0.9365779	266050.87
12	288896.13	0.9310157	268966.83
13	293807.36	0.9254865	271914.75
14	298802.09	0.9199901	274894.97
15	303881.72	0.9145264	277907.86
16	309047.71	0.9090951	280953.77
17	314301.53	0.9036961	284033.07
18	319644.65	0.8983292	287146.11
19	325078.61	0.8929941	290293.28
20	330604.95	0.8876907	293474.93
21	336225.23	0.8824188	296691.46
22	341941.06	0.8771782	299943.24
23	347754.06	0.8719687	303230.67
24	353665.88	0.8667902	306554.12
25	359678.20	0.8616424	309914
26	365792.73	0.8565252	313310.7
27	372011.20	0.8514384	316744.63
28	378335.39	0.8463818	320216.2
29	384767.09	0.8413553	323725.82
30	391308.13	0.8363585	327273.9
		Total	8420160.4
Annuity Amount = Last Annuity Amount*101.7%
Discount rate =(((1+EAR)^(1/4))*4)-4			9.65%

Therefore the company is being offered $8420160.4