Question

Calculate the rent of a decreasing annuity at 8% interest compounded quarterly with payments made every quarter-year for 7 years and present value $78,000.

Answer 1

The general Formula for a decreasing Annuity is:

`P = ( ((1+i)^n -1)/(i (1+i)^n)) R`
For this example we have:
P = 78,000
n = 7*4 = 28
i = 8%/4 = 2% = 0.02

After substituting you can find value for R, rent.