Problema Solution
Find the present value of the ordinary annuity. (Round your answer to the nearest cent.)
$2500/semiannual period for 8 yr at 13%/year compounded semiannually
Answer provided by our tutors
A = P(1 + r/n)nt
A = 2500(1 + .13/2)2*8
A = 2500(1 + .065)16
A = 6847.52668
$6847.53