An accounting firm agrees to purchase a computer for $190,000 (cash on delivery) and the delivery date is in 270 days. How much do the owners need to deposit in an account paying 0.75% compounded quarterly so that they will have $190,000 in 270 days?

FV = Future Value ($190,000), (Present Value) PV = ? ,

 r = annual interest rate (0.75% or 0.0075), n = number of times the interest is compounded per year (quarterly compounding means n=4),  t = time in years.

First, convert 270 days into years since the interest rate is annual.

FV = PV \times (1 + \frac{r}{n})^{n \times t} 

We can now plug the values into the formula.

 190,000 = PV \times (1 + \frac{0.0075}{4})^{4 \times 0.7397} 

 190,000 = PV \times (1 + 0.001875)^{2.9588} 

190,000 = PV \times 1.005583^2.9588

Using a calculator to compute the value inside the parentheses:

190,000 = PV \times 1.017624 

 divide both sides by 1.017624 to solve for PV.

PV = 190,000 /1.017624

PV = 186,590.56.

So, the accounting firm would need to deposit approximately $186,590.56 in an account paying 0.75% compounded quarterly to have $190,000 in 270 days.