Julia Baker died, leaving to her husband Brent an insurance policy contract that
ID: 2772538 • Letter: J
Question
Julia Baker died, leaving to her husband Brent an insurance policy contract that provides that the beneficiary (Brent) can choose any one of the following four options. Money is worth 2.50% per quarter, compounded quarterly. Compute Present value if: (Use the tables below.)
Can someone please help me with the answer below? I got most of them correct...but can't get the last one right
TABLE 6-5 PRESENT VALUE OF AN ANNUTY DUE OF 2%% 1.97087 2.91347 3.82861 4.71710 1.96154 1.97561 2.92742 3.85602 4.76197 2.94156 2.85941 4.46511 5.71348 6.80143 7.47199 5.45182 5.21238 5.91732 6.58238 7.20979 7.80169 6.50813 6.41719 6.07589 7.73274 7.46321 8.10782 8.17014 9.11090 9.76048 10.51421 9.30641 8.88887 13 10625 11.98319 12.69091 11.63496 12.29607 10.89884 12.93794 12230 12.218760 13.38138 12.11839 11.37988 11.83777 10.71225 10590 11.47726 13.56110 15.29187 16.67846 17.35143 18 14.71220 15.35336 15.97889 14.75351 14.13394 21 16.58916 17.18455 17.76541 18.33211 18.88499 13.46221 13.82115 14.16300 12.46992 13.04158 13.55038 18.01121 16.41502 15.45112 17.44361 17.93554 18.41315 19.32703 25 19.91393 18.87684 7329 5.89813 459072 21.12104 15.37519 19.95061 20.46401 14.00317 14.21053 14.40816 28 20.96489201845 19.76411 21.45355 17.98371 16.14107 31 32 20.60044 16.37245 16.59281 22.39541 22.84918 23 29188 23.72379 15.08404 15.23023 15.36814 21.38877 21.76579 24.98856 25.49859 19.14765 19.41120Explanation / Answer
It will be $77,613.55
for first part - $4,035 , n = 12(quarterly for 3 years) , r =.025 = If we use PV function excel as :
=PV(0.025,12,-4035,0) = $41,390.08
For 2nd part since it beggins for the following 25 quarters after 12 quarters . So, n = 37
=PV(0.025,37,-1512,0) = $36,223.46
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