Using technology, determine the present value given that you make quarterly payments of 1 dollars comma 635 at 4 point 2 percent compouded quarterly over a 3 year period. Round your answer to the nearest cent.

There are 3 × 4 = 12 quarterly payments, and the interest rate per quarter is 4.2% ÷ 4 = 1.05%, or 0.0105. For payments made at the end of each quarter, use the present value of an ordinary annuity: 1,635 × [1 − (1.0105)^−12] ÷ 0.0105 ≈ $18,344.05. The present value is choice C, $18,344.05.

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