Question $26$

$($Estimated time allowance: $7$ minutes$)$ You have just won a very special prize, a "consol"

bond that pays $$40,000$ every $3$ months $($quarterly payment$)$ forever. The first payments is

given three months from now. You are not that enthusiastic about this and in fact, you

really want to just receive a lump$-$sum amount today. If the APR is $24\%$ compounded

monthly, what is the amount you want to receive today instead? For your answer round to

the nearest thousand, do not enter the dollar $($$$)$ sign, and DO NOT use commas for the

thousands $($though some problems will let you use it and some others will require it$).$ For

example, if you obtained $$230,440\mathrm{.}75$ then enter $230$ ; if you obtained $4,306,000$ then

enter $4306.$

You can use the attached excel file which includes the formulas for TVM: