Final answer:
To find the value for n in the present value of an ordinary annuity formula with quarterly payments for 15 years, we multiply the number of years by 4 quarters per year to get 60 quarters. Hence, the correct answer for n in the formula is 60, which correlates with option b (-60). option B is correct answer.
Step-by-step explanation:
The question involves finding the value for n in the present value of an ordinary annuity formula, given that quarterly payments are made for 15 years.
The formula for the future value of an ordinary annuity is f v = p ( (1-(1+i)⁻ⁿ/i) ). Since payments are made quarterly, we have to find the total number of payments made over the 15 years. One year has 4 quarters, so for 15 years, we would calculate the total number of payments as 15 years × 4 quarters/year = 60 quarters. Therefore, the total number of payment periods n is 60, which corresponds to option b (-60).