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We Pay Insurance Co. will pay you $1,425 each quarter for 26 years. You want to...

We Pay Insurance Co. will pay you $1,425 each quarter for 26 years. You want to earn a minimum interest rate of .98 percent per quarter. What is the most you are willing to pay today for these payments?

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Expert Solution

ANSWER = $92,671.53

P = Periodic payment = $1,425

r = Rate of interest = 0.98% = 0.0098

n = No. of periods = 26 years x 4 = 104

* The answer might differ a bit because of the rounding-off of decimal places in intermediate steps.

jeff jeffy answered 2 years ago
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