Question

Julia Baker died, leaving to her husband Morgan an insurance policy contract that provides that the beneficiary (Morgan) can choose any one of the following four options. Money is worth 2.50% per quarter, compounded quarterly. Compute Present value if:

$4,120 every 3 months payable at the end of each quarter for 5 years.

19,470 immediate cash and $1,947 every 3 months for 10 years, payable at the beginning of each 3-month period

$4,120 every 3 months for 3 years and $1,420 each quarter for the following 25 quarters, all payments payable at the end of each quarter

Answer 1