Question

A payment of $100 is made at the end of each two months for a period of six years. The nominal annual rate of interest is 3 percent, convertible every 8 months. Find the present value of this series of payments. $3,150 $3,210 $3,250 $3,290 $3,330

Answer 1

00/1 - CH 0.03) - G 0.03 $ 3250.81 Conclusion :- So answer option 10 is correct option C is correct

Solution: A payment made at the end of each 2 monton -$100 period = 6 years The nominal annual rate of interest = 3% Convertible period = 8 months Present value of this series of payments ? - Formula of Present value of serien of payment : - The present value of annuity formula determines the value of a series of future periodic payments at a given time 2. When the periodic payments or dividends are all the game this is considered a geomatric senin.. 3. This equation can be simplitted by multiplying it by Clar)/(1+r), which is to multiply it by 1. I . where an p- periodic payment N = rate per period S na number of periodo An den made periodic payment = $100 (For 2 months " So For 12 months = $600 (P2 Substitute into forn r=3%. n=fo years

Please find the above analysis and answer

Option C is correct