An annuity consists of quarterly payments of $950 for 8 years and 9 months Discounting at 8 compounded quarterly, determine the present value of the annuity if the payments are made a At the end of each quarter b At the beginning of each quarter c By what percentage does the answer to Part (b) exce...

Given PMT 950 j 8 m 4 n 4875 35 ...

An annuity consists of quarterly payments of $950 for 8 years and 9 months. Discounting at 8%

Question:

An consists of quarterly payments of $950 for 8 years and 9 months. Discounting at 8% compounded quarterly, determine the present value of the if the payments are made:
a. At the end of each quarter?
b. At the beginning of each quarter?
c. By what percentage does the answer to Part (b) exceed the answer to Part (a)?
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...