now at 8% nominal interest, compounded quarterly, to provide an annuity of $4,000 per year for...

Question

Question

now at 8% nominal interest, compounded quarterly, to provide an annuity of $4,000 per year for seven years starting in the 8t

Answer 1

Answer #1

rate compounded annually=(1+8%/4)^4-1=8.2432%

Amount to be invested now=4000/(1+8.2432%)^8*(1-1/(1+8.2432%)^7)/(1-1/(1+8.2432%))=11862.78812

Answer 2

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