Using technology, determine the present value given that you make quarterly payments of $1,635 at 4.2% compouded quarterly over a 3 year period. round your answer to the nearest cent.

The formula for finding present value is:
, where P - payment amount, i - interest rate, n - number of payments.

So in this case, P = 1635, i = 4.2 / 100 = 0.042, n = 3 * 4 = 12 (4 quarters per year for 3 years).

Now, we have everything needed to calculate the present value:


So the correct answer is $15168.06

Pv=pmt [(1-(1+I/k)^(-kn))÷(I/k)]
Pv=1,635×((1−(1+0.042÷4)^(−4×3))÷(0.042÷4))=18,344.05