We Pay Insurance Co. will pay you $1,450 each quarter for 27 years. You want to...
We Pay Insurance Co. will pay you $1,450 each quarter for 27 years. You want to earn a minimum interest rate of .99 percent per quarter. What is the most you are willing to pay today for these payments?
$95,420.38
$91,124.72
$277,956.49
$92,723.40
$95,920.76
Homework Answers
Installment per quarter for 27 years =$1450
Total Quarter =27*4 =108
Interest rate per quarter = 0.99%
Present value to pay for these payment would be = Installment* PVAF(.99%,108 period) = 1450*66.15 =$95920.76
$95,920.76 is correct answer.
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