Using technology, determine the present value given that you make monthly payments of $250.00 at 2.3% compounded monthly over a 5 year period. Round your answer to the nearest cent.

For monthly payments, use the present value of an ordinary annuity: PV = 250[1 − (1 + 0.023/12)^−60] ÷ (0.023/12). There are 5 × 12 = 60 payments, and the monthly interest rate is 0.023/12. This gives about $14,156.84, so the correct choice is c. $14,156.84.

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