Valdez Construction signed a note with a payment of $5,200 per quarter for 5 years.
Find the amount they must set aside today to satisfy this capital requirement in an account earning 8% compounded quarterly.
:) Use the formula of the present value of annuity ordinary Pv=pmt [(1-(1+r/k)^(-kn))÷(r/k)] Pv=5,200×((1−(1+0.08÷4)^(−4 ×5))÷(0.08÷4))=85,027.45....answer
