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Sagot :
The present value of an ordinary annuity has payments of $19157.64 per year for 24 years at 12.34% compounded quarterly is $587394.59 and this can be determined by using the formula of an ordinary annuity.
Given :
- Annuity Payment = $19157.64
- Time period = 24 years
- Interest rate per annum = 12.34%
- Compounded quaterly.
The formula of an ordinary annuity is given below:
[tex]\rm P=PMT\times\dfrac{1-\dfrac{1}{(1+r)^n}}{r}[/tex]
where P is the present value, 'n' is the number of times periods, r is the interest rate, and PMT is each Annuity payment.
Now, substitute the values of PMT, n, and r in the above equation.
[tex]\rm P=19157.64\times\dfrac{1-\dfrac{1}{(1+0.1234)^4}}{0.1234}[/tex]
[tex]\rm P=19157.64\times3.0157[/tex]
P = 587394.59
Therefore, the correct option is C).
For more information, refer to the link given below:
https://brainly.com/question/14295570
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