Answer:
b. $524.94
Explanation:
We need to solve for the PTM of a 6 year annuity with quarterly payment discount for 6.25% compounding quarterly as well:
[tex]PV \div \frac{1-(1+r)^{-time} }{rate} = PTM\\[/tex]
PV $10,438.8800
time 24 (6 years x 4 quarter per year)
rate 0.015625 8 ( 0.0625 / 4 )
The payment every quarter will be for:
[tex]10438.88 \div \frac{1-(1+0.015625)^{-24} }{0.015625} = PTM\\[/tex]
PTM $ 524.942
