5. find the present value of the annuity. amount per payment: $6,225 payment at end of each: quarter number of years: 6 interest rate: 8% compounded: quarterly

To solve this we are going to use the present value of annuity formula: 
where
is the present value 
is the periodic payment
is the interest rate in decimal form 
is the number of times the interest is compounded per year 
is the number of payments per year 
is the number of years

We know for our problem that  and . To convert the interest rate to decimal form, we are going to divide it by 100%:


Since the interest is compounded quarterly, it is compounded 4 times per year, so . Similarly, since the payment is made at the end of each quarter, it is made 4 times per year; therefore, . 
Lets replace the values in our formula:




We can conclude that the present value of the annuity is $117,739.19