Use the formula of the present value of annuity ordinary The formula is Pv=pmt [(1-(1+r/k)^(-kn))÷(r/k)] Pv present value 84700 Pmt payment per quarter ? R interest rate 0.10 K compounded quarterly 4 N time 9 years We need to solve for pmt Pmt=pv÷ [(1-(1+r/k)^(-kn))÷(r/k)] Pmt=84,700÷((1−(1+0.10÷4)^(−4 ×9))÷(0.10÷4))=3,595.65
