rate compounded monthly=((1+rate compounded quarterly/4)^(4/12)-1)*12=((1+6%/4)^(4/12)-1)*12=5.9702%
Discounted value of annuity with payments beginning of month=Monthly payments/(rate/12)*(1-1/(1+rate/12)^(12*t))*(1+rate/12)
=15/(5.9702%/12)*(1-1/(1+5.9702%/12)^(12*20))*(1+5.9702%/12)
=2109.178306
Accumulated value=Discounted value*(1+rate/12)^(12*t)=2109.178306*(1+5.9702%/12)^(12*20)=6940.594563
pls solve this mathematically use a time diagram if possible. please do not use excel spreadsheet...
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