The answer to the question
The present value of an annuity is given by

where: PV is the current value of the annuity, P is the periodic payment, r is the apr, t is the number of compounding in one year and n is the number of years.
Thus, given that PV = $51,800; r = 7.8% = 0.078; t = 12; n = 4.

Therefore, the <span>monthly payment is $1,259.73</span>
Answer:
Billy has $27.51
Step-by-step explanation:
First let's set up an equation to solve this problem.
Assign a variable to Billy's amount. Let's make it x.
Then we just interpret the problem and solve:
2x - 1.30 = 53.72
+1.30 +1.30
----------------------------
2x = 55.02
(Divide by 2 on both sides)
----------------------------
x = $27.51
2x = Billy's amount doubled
2x - 1.30 = Taking away 1.30 from double Billy's amount
53.72 = Sara's amount