Answer:
$41,623.84
Explanation:
[tex]\text{Present Lump\: Sum}, \:A_0=\dfrac{P[1-(1+i)^{-kt}]}{\frac{r}{k} }[/tex]
C=Payment Per Period
Yearly Interest Rate, =6%=0.06
Therefore, Periodic(Quaterly) Interest Rate, i= 0.06/4=0.015
Total number of Periods, n =4 X 30 =120 Quarters
Therefore, the maximum lump sum that the client will be willing to pay is:
[tex]=\dfrac{750[1-(1+0.015)^{-4X30}]}{0.015}=\$41,623.84[/tex]
