Problem:
If Brenda contributes $630 at the end of each month to her retirement account that pays 8.75% compounded semiannually, how much will she have when she retires 20 years from the start of contributions?
Required:
Question: Find the discounted value of an ordinary annuity of $1,490 a month for 3 years if the interest is 14.25% compounded quarterly.
Note: Provide support for your underlying principle.