Share
Explore BrainMass

Present Value

If I receive $550 each quarter for the next 5 years and receive an investment return of 8% compounded quarterly, what is the present value?

$550 received per quarter for the next five years.
Invest and receive a return of 8% compounded quarterly.
What is the prevent value worth?
Please show me the steps of how you solve this problem.

Thank you.

Solution Preview

Present Value
If I receive $550 each quarter for the next 5 years and receive an investment return of 8% compounded quarterly, what is the present value?

$550 received per quarter for the next five years.
Invest and receive a return of 8% ...

Solution Summary

This solution is comprised of a detailed explanation to answer what is the present value of the annuity of receiving $550 each quarter.

$2.19