document.write( "Question 1193770: Find the cash price of a property if it is bought for $150,000 down payment and payments of $15,000 at the end of every 3 months for 7 years if money is worth 10% compounded quarterly.
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Algebra.Com's Answer #848596 by proyaop(69)\"\" \"About 
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**1. Calculate the Present Value of the Quarterly Payments:**\r
\n" ); document.write( "\n" ); document.write( "* **Quarterly Interest Rate:** 10% annual interest / 4 quarters per year = 2.5% per quarter (0.025)
\n" ); document.write( "* **Number of Payments:** 7 years * 4 quarters/year = 28 payments\r
\n" ); document.write( "\n" ); document.write( "* **Present Value of an Ordinary Annuity Formula:**\r
\n" ); document.write( "\n" ); document.write( " Present Value = Payment * [(1 - (1 + r)^-n) / r]
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\n" ); document.write( " Where:
\n" ); document.write( " * Payment = $15,000
\n" ); document.write( " * r = Quarterly interest rate (0.025)
\n" ); document.write( " * n = Number of payments (28)\r
\n" ); document.write( "\n" ); document.write( "* **Calculate:**
\n" ); document.write( " Present Value = $15,000 * [(1 - (1 + 0.025)^-28) / 0.025]
\n" ); document.write( " Present Value ≈ $15,000 * 19.9635
\n" ); document.write( " Present Value ≈ $299,452.50\r
\n" ); document.write( "\n" ); document.write( "**2. Calculate the Cash Price of the Property**\r
\n" ); document.write( "\n" ); document.write( "* Cash Price = Down Payment + Present Value of Payments
\n" ); document.write( "* Cash Price = $150,000 + $299,452.50
\n" ); document.write( "* Cash Price = $449,452.50\r
\n" ); document.write( "\n" ); document.write( "**Therefore, the cash price of the property is approximately $449,452.50.**
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