Please help me TVM question. Confusing [P/Y] = 1 with [P/Y]= different number

[archived_user]

Find the present value of $3000 due in 5 years and 6 months if money is worth 4.5% compounded quarterly.
P1: I tried:
P/Y = 1
N = 5.5 x 4= 22
FV = 3000
I/Y = 4.5 / 4 = 1.125
CPT PV ==> -2345
=====
P2: I tried:
P/Y = 4 and C/Y = 4
N = 5.5
FV = 3000
I/Y = 4.5
CPT PV ==> -2820
What ?!?!!
How can this happen?

 

[archived_user]

3000/(1+0.045/4)22 = 2,345.489
3000/(1+0.045/4)5.5 = 2,820.98
Under P1, your calculator will automatically set C/Y=1. So you end up with 22 compounding periods at 1.125% per period. Under P2, N has to be 22, not 5.5.

 

[archived_user]

breadmaker wrote:
3000/(1+0.045/4)22 = 2,345.489
3000/(1+0.045/4)5.5 = 2,820.98
Under P1, your calculator will automatically set C/Y=1. So you end up with 22 compounding periods at 1.125% per period. Under P2, N has to be 22, not 5.5.

Thank you so much.