Answer:
$47,092.45
Step-by-step explanation:
Oliver invested=?
Rate= 12%=0.012
n=5 years
m=4 "compounded quarterly"
Payment received = $50000
Present Value = P(1+i/m)^-mn
PV=50000(1+0.012/4)^-5*4
PV=50000(1+0.003)^-5*4
PV=50000(1.003)^-5*4
PV=50000(1.003)^-20
PV=50000(0.9418491)
PV=47,092.455
PV=$47,092.45
The amount that Oliver initially invested 5 years ago at 12% p.m.Interest compounded quarterly and now received a payment of $50000 is $47,092.45.
