SOLUTION: What is the present value of an annuity that earns interest at 4.5% compounded quarterly and pays out $1,000 quarterly for 10 years? Round to the nearest cent. Explain to me thi

Question 1178716: What is the present value of an annuity that earns interest at 4.5% compounded quarterly and pays out $1,000 quarterly for 10 years? Round to the nearest cent.
Explain to me this problem step-by step
Found 2 solutions by MathLover1, MathTherapy:
Answer by MathLover1(20849) (Show Source): You can put this solution on YOUR website!

First, convert as a percent to as a decimal

rate per year,

Then solve the equation for

Summary:
The total amount accrued, principal plus interest, with compound interest on a principal of $ at a rate of % per year compounded 4 times per year over 10 years is $.

Answer by MathTherapy(10552) (Show Source): You can put this solution on YOUR website!

What is the present value of an annuity that earns interest at 4.5% compounded quarterly and pays out $1,000 quarterly for 10 years? Round to the nearest cent.
Explain to me this problem step-by step

Correct answer:
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