How much money must be deposited now, at 6% interest compounded semiannually, to yield an annuity payment of?
Posted by MarkOct 14
,000 at the end of each 6 month period, for a total of 5 years? Round your answer to the nearest cent.
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So I guess this is an "ordinary" Present value annuity:
(Payments are paid out starting at the end of the first compounding period)
$34,120.81 =4000*((1-(1+0.06/2)^(-5*2))/(0.06/2))
Without rounding:
$34,120.8113471
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