Question

If quarterly payments are made for 15 years, find the value for n in the following present value ordinary annuity formula.

F V = P (StartFraction (1 + t) superscript n Baseline minus 1 over i EndFraction)
a.
(45)
b.
(60)
c.
(15)
d.
StartFraction 15 Over 4 EndFraction

Answer 1

b : 60

Explanation:

Answer 2

b. (60)

Explanation:

n represents the number of payments. If there are 4 per year for 15 years, that's a total of 4×15 = 60 payments.

n = 60