Question 1149208
How much money should Jordan deposit into an account today, at 2.9% interest compounded quarterly, so that it will yield payments of $1000 at the end quarter for the next 8 years?
<pre>Correct amount to deposit, TODAY: {{{highlight_green("$28,467.58")}}}
Use the formula: {{{matrix(1,3, PV[oa], "=", PMT * ((1 - 1/(1 + i/m)^(mt))/(i/m)))}}}, where:   {{{matrix(5,4, PV[oa], "=", Present_Value, (Unknown),
PMT, "=", Periodic_Payment, ("$1,000"), 
i, "=", interest_rate, (.029),
m, "=", Periodic_compounding-period(s), (4),
t, "=", time_in_years, (8))}}}
To make it a LITTLE easier, you can calculate {{{matrix(1,3, i/m, "=", .029/4)}}}
The other person who responded KEEPS doing these problems the wrong way, and keeps giving wrong answers, ALL the time. 
With his answer: $25,395.52, quarterly payments will NEVER be $1,000. That amount will only provide $892.09 every quarter for 8 years.