Question: ' Question 25 o l 5 pts George Strait will receive quarterly music royalties starting in three months of $83,338 for the next 18 years.

' Question 25 o l 5 pts George Strait will receive quarterly music royalties starting in three months of $83,338 for the next 18 years. If the opportunity cost of capital is 9.2% per year compounded monthly, how much are the royalties worth to George today? Round your answer to the nearest whole dollar. Do not enter the 35 sign. You can enter commas. For example, $1,234.5678 is 1,234.57 D / 2,904,971 margin of error +/- 1 You are solving for the present value of an ordinary annuity where the payments are quarterly, so the periodic rate must be quarterly as well. You must begin by getting the monthly rate from the APR and then compound it up three months to get an effective quarterly rate. The payment and rate are now consistent and you can use your 3rd row TVM keys. years x 4 N % EQR l/Y $ PMT CPT PV

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