Suppose payments will be made for years at the end of each semiannual period into an ordinary annuity earning interest at the rate of 8.5%/year compounded semiannually. If the present value of the annuity is $40,000, what should be the size of each payment? Round your answer to the nearest cent.
A) R = $5,403.70
B) R = $5,498.53
C) R = $5,417.65
D) R = $5,441.18

Question

Suppose payments will be made for  years at the end of each semiannual period into an ordinary annuity earning interest at the rate of 8.5%/year compounded semiannually. If the present value of the annuity is $40,000, what should be the size of each payment? Round your answer to the nearest cent. ​
A) R = $5,403.70 
B) R = $5,498.53 
C) R = $5,417.65 
D) R = $5,441.18

Quizplus · Accepted Answer

The Answer of Suppose payments will be made for  years at the end of each semiannual period into an ordinary annuity earning interest at the rate of 8.5%/year compounded semiannually. If the present value of the annuity is $40,000, what should be the size of each payment? Round your answer to the nearest cent. ​
A) R = $5,403.70 
B) R = $5,498.53 
C) R = $5,417.65 
D) R = $5,441.18

Suppose Payments Will Be Made for Years at the End