We are asked to determine the present value of an annuity that is paid at the end of each period. Therefore, we need to use the formula for present value ordinary, which is:

$PV_{ord}=C(\frac{1-(1+i)^{-kn}}{\frac{i}{k}})$

Where:

$\begin{gathered} C=\text{ payments each period} \\ i=\text{ interest rate} \\ n=\text{ number of periods} \\ k=\text{ number of times the interest is compounded} \end{gathered}$

Since the interest is compounded semi-annually this means that it is compounded 2 times a year, therefore, k = 2. Now we need to convert the interest rate into decimal form. To do that we will divide the interest rate by 100:

$\frac{5.9}{100}=0.059$

Now we substitute the values:

$PV_{ord}=4000(\frac{1-(1+0.059)^{-2(3)}}{\frac{0.059}{2}})$

Now we solve the operations, we get:

$PV_{\text{ord}}=39462.50$

Therefore, the present value must be $39462.50

8 0

1 year ago

What is the median of 32 48 22

inysia [295]

The median is 32; list numbers least to greatest, which ever is in the middle is the median

8 0

3 years ago

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ON YOUR OWN

vichka [17]

5 units because your starting from (-2,-2) so the last -2 will stay and the first number(-2) will go up until you hit the (,3) which will be 5 units away

6 0

2 years ago

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