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Hello I want to make sure I understand what is being asked here,

If payments of $50$ are made every $3$ months from Sept.2 , 2015 to June 2 , 2020 inclusive, and I was asked what would the value ( I guess it means present value) be in these two situations.

1) $1$ year before the first payment at nominal $i^{(12)}=0.12$

2)$3$ months after final pay at nominal discount $d^{(2)}=0.06$ ,

First of all, when a question says payments are made every $3$ months from Sept.2 , 2015, does that imply the first payment is made on sept.2, 2015, or on dec.2, 2015?

Assuming the first,

I solved for $i^{(4)}/4$ to be $0.03$ would this be the intrest I want to use for (1)

So for (1) would I just want to use formulas for annuities due and discount by 4 ? here I get an answer of 225.28

for (2) I get 381.17 or If I want the PV then would be discounted to 540.5

I got these by converting the rates to more suitable one. Can anyone please help me confirm or deny ?

How did I solve it?

I used

$$(1/1+0.03)^{4}50\frac{a_{19,0.03}}{a_{3_0.03}}$$

and for the second part, with $i=0.0153$ , I am not sure I converted this right that is one thing I am not very confident about

$$(1+i)50\frac{s_{19,0.0153}}{a_{3,0.0153}}$$

Explanation of the notations:

$a_{n,i}$ This refers to the present value of an annuity immediate, ie one that has payments at the end of every period for n periods with intrest i ,

it is equal to $$\frac{1-v^{n}}{i}$$ where $v=\frac{1}{1+i}$

$s_{n,i}$ refers to the accumulated value of annuity immediate and is equal to

$$\frac{(1+i)^{n}-1}{i}$$

I am looking to see if anyone can help me to see if it is correct or not, or if I am doing something wrong? Can really no one even tell me if I am on right track or not? Please? Or can atleast anyone tell me what more I can even do to get some help?

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    What value? The present value of each cashflow? – 2017-02-16
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    @Olod It just says values – 2017-02-16
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    The first problem is equivalent to a yearly problem with the interest rate $i^{(4)}/4$ p.a., as you rightly wrote, and for the duration of $n$ years. You know this principle? Look your assignment to see whether the cashflow is in advance or in arrears. For the second problem convert the nominal discount rate to the nominal interest rate, and work likewise. – 2017-02-16
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    @Olod I put what answers I got. is it correct or should I try again? – 2017-02-16
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    @PersonaA What are your calculations ? The result only doesn´t really help. – 2017-02-17
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    @callculus I have added my work and made a bounty for anyone able to help – 2017-02-19
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    @PersonaA That´s nice. But many people (including me) here are not familiar with the actuarial notation. To raise the chance for an answer I would suggest that you post your question without any acuarial notation. – 2017-02-19
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    @callculus, can you please tell me what I should update and explain? – 2017-02-19
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    These terms: $a_{...}$ and $s_{...}$ – 2017-02-19
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    @callculus okay please let me know if anything else Is not clear , I updated – 2017-02-19
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    I can comprehend it and I think the most others too. At the moment I´m watching Iron Man 3. So I cannot answer the question yet, – 2017-02-19
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    @callculus I understand, maybe later if you get the chance – 2017-02-19
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    @callculus ,, Can you please tell me what I need to do to get help? Anything else to add/ etc? I have been looking for any help for four day now – 2017-02-21
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    Can you explain what $i^{(t)}$ means? – 2017-02-25

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