a series of equal quarterly reciepts of 1000 extends over a period of 5 years. What is the present worth of this quarterly payment series at 8% interest, compouided continuously

$16,320 to the nearest dollar amount

Explanation:

The annual effective rate is computed thus:

effective annual rate=e^(r/t)-1

e= 2.718

r=8%

t=number of payments per year=4

effective quarterly  rate=2.718^(8%/4)-1

=2.718^(8%/4)-1=2.01992%

The present value of the quarterly receipts can be determined using a financial calculator whereby the calculator is set to its default end mode:

N=20(number of quarterly receipts in 5 years=5*4)

I/Y=2.01992(quarterly interest rate)

PMT=1000

FV=0(after 5 years the number of quarterly payments outstanding would be nil)

CPT

PV=$16,320.04  

the law, public safety, corrections, and security cluster prepares people for careers in planning, managing, and providing legal, public safety, protective services and homeland security, including professional and technical support services.