View Single Post
  #1  
Old October 16th, 2009, 11:29 AM
lil_cookie lil_cookie is offline
Junior Member
 
Join Date: Feb 2009
Posts: 59
Country:
Thanks: 31
Thanked 0 Times in 0 Posts
lil_cookie is on a distinguished road
Default Paying In Advance

The premiums on an insurance policy are $60 every 3 months, payable at the beginning of each three-month period. If the policy holder wishes to pay 1 year’s premiums in advance, how much should be paid provided that the interest rate is 4.3% compounded quarterly?


What formula would I use for this? The Present value annutiy formula is what i believe it should be...

Reply With Quote