Question

Julia Baker died, leaving to her husband Tony an insurance policy contract that provides that the beneficiary (Tony) can choose any one of the following four options. Money is worth 2.5 % per quarter, compounded quarterly. Compute Present value if: Click here to view factor tables (a) $59,630 immediate cash. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, eg. 458,581) Present value $ 59630 eTextbook and Media. (b) $4,110 every 3 months payable at the end of each quarter for 5 years. (Round factor values to 5 decimal places, eg. 1.25124 and final answer to 0 decimal places, eg. 458,581.) Present value $ 64071 eTextbook and Media (c) $19,170 immediate cash and $1,917 every 3 months for 10 years, payable at the beginning of each 3-month period. (Round factor values to 5 decimal places, eg. 1.25124 and final answer to 0 decimal places, eg. 458,581) Present value $ eTexthook and Media

Need help with Option 3 & 4 please

Answer 1

Information about option d is missing

a)
The present value of $59,630 cash paid today is	$59,630
b)
PMT	$   4,110.00
Rate	2.50%
Period (4 x 5 years)	20
Prsent Value = PV(2.5%,20,-4110,0,0)	$64,071
or
PV–OA = R (PVF–OA n, i)
PV–OA = $4110 (PVF–OA20, 2.5%)
PV–OA = $4110 x  (15.58916)	$ 64,071
c)
PMT	$   1,917.00
Rate	2.50%
Period (4 x 10years)	40
Prsent Value = PV(2.5%,40,-1917,0,1)	$49,325.07
The present value of option = 19,170 + $49,325.07	$68,495
or
PV–AD = R (PVF–AD n, i)
PV–AD = $1917 (PVF–AD40, 2.5%)
PV–AD= $1917 x  (25.73034)	$ 49,325.06
The present value of option = 19,170 + $49,325.07	$68,495