I am interested in purchasing securities that cost $900 each, which call for 4 payments of $50 (at the end of each year), plus and extra payment of $1000 at then end of the 4 years. My money is currently in the bank earning 8% nominal interest rate which is compounded quarterly. I need to decide if the securities are a good investment and want to know their present value.

Since your question was originally posted in Graduate School, I am guessing this is homework and have moved it to the appropriate board.

How may we help you work the problem?