Q1: payments of $ 670 are being made at the end of each month for 5 years at an interest of 8% compounded monthly. calculate the present value.

The present value is $ 27365.55

Step-by-step explanation:

Given as :

The amount at end of each month = $ 670

So, The amount for 5 years = 12 × 5 × $ 670 = $ 40200

The rate of interest compounded monthly = 8%

Let The Present value or Principal = P

So, from compounded method

Amount = principal ×

Or, $ 40200 = P ×

Or, $ 40200 = P ×

or, $ 40200 = P × 1.469

∴  P =

I.e P = $ 27365.55

Hence The present value is $ 27365.55   Answer

a is the correct

the answer is 40.

proof: