Question

Valdez Construction signed a note with a payment of $5,200 per quarter for 5 years.

Find the amount they must set aside today to satisfy this capital requirement in an account earning 8% compounded quarterly.

Answer 1

:)
Use the formula of the present value of annuity ordinary
Pv=pmt [(1-(1+r/k)^(-kn))÷(r/k)]
Pv=5,200×((1−(1+0.08÷4)^(−4
×5))÷(0.08÷4))=85,027.45....answer

Hope it helps