Find the present value of an ordinary annuity of 60 payments of $5000 each made quarterly and earning interest at 1.5%/year compounded quarterly. (Round your answer to the nearest cent.) $
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Step 1
To find the present value of an ordinary annuity, we can use the present value of annuity formula: \[ PV = P \times \left( \frac{1 - (1 + r)^{-n}}{r} \right) \] Where: - \( PV \) = Present Value - \( P \) = Payment amount per period - \( r \) = Interest rate per Show more…
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