Find the present value of the annuity. Round to the nearest cent.
-Payments of $60,000 made semiannually for 12 years at 5% compounded semiannually

Question

Find the present value of the annuity. Round to the nearest cent. 
-Payments of $60,000 made semiannually for 12 years at 5% compounded semiannually

Quizplus · Accepted Answer

To find the future value of an annuity with semiannual payments, use the future value of an annuity formula: FV = Pmt * [(1 + r)^nt - 1] / r, where Pmt = $60,000, r = 0.05/2 = 0.025, n = 2 (compounding periods per year), and t = 12 years. Plugging in these values gives the future value closest to $1,073,099.40.

Find the Present Value of the Annuity