Question
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What is the present value of the following annuity payments: $500 each 6 months for 5...
- What is the present value of the following annuity payments: $500 each 6 months for 5 years at an interest rate of 10% compounded semiannually?
Solutions
Expert Solution
We need to compute PV of annuity, formula for which is:
PV =
P = $500, n = 5 * 2 = 10 semi-annual periods, r = 10%/2 = 5% (semi-annual)
PV = 500 * 7.721735
PV = $3,860.87
jeff jeffy answered 2 years agoRelated Solutions
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Please show work!
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C)
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D)
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E)
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