Answer:
$2638.87
Explanation:
The present value of an investment compounded quarterly can be determined by:
[tex]PV = \frac{FV}{(1+\frac{r}{4})^{4t}}[/tex]
For a discount rate of 9 percent, the present value of the given cash flows is:
[tex]PV= \frac{815}{(1+\frac{0.09}{4})^{4*1}}+\frac{990}{(1+\frac{0.09}{4})^{4*2}}+0+\frac{1,520}{(1+\frac{0.09}{4})^{4*4}}\\PV=\$2638.87[/tex]
The present value is $2638.87.
