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fenix001 [56]
4 years ago
9

1.

Mathematics
1 answer:
Irina18 [472]4 years ago
8 0
Present Value: P=?
Amount per Payment at the end of each 6 months: A=$820
Number of periods: n=14*2→n=28
Interest rate: i=5%=5/100→i=0.05
Compounded Semiannually

P=A{[1-(1+i)^(-n)]/i}
P=$820{[1-(1+0.05)^(-28)]/0.05}
P=$820{[1-1.05^(-28)]/0.05}
P=$820[(1-0.255093637)/0.05]
P=$820(0.744906363/0.05)
P=$820(14.89812725)
P=$12,216.46435
P=$12,216.46

Answer: Present Value is $12,216.46
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