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.

Answer: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 = $ 40200The rate of interest compounded monthly = 8%Let The Present value or Principal = P So, from compounded method Amount = principal × [tex](1+\frac{Rate}{100})^{Time}[/tex]Or, $ 40200 = P × [tex](1+\frac{8}{100})^{5}[/tex]Or, $ 40200 = P × [tex](1.08)^{5}[/tex] or, $ 40200 = P × 1.469∴  P = [tex]\frac{40200}{1.469}[/tex]I.e P = $ 27365.55 Hence The present value is $ 27365.55   Answer