Find the present value (in dollars) of an annuity that pays $9,000 at the end of each 6-month period for 5 years if the interest rate is 4% compounded semiannually. (Round your answer to two decimal places.)

Find the present value (in dollars) of an annuity that pays $9,000 at the end of each 6-month period for 5 years if the interest rate is 4% compounded semiannually. (Round your answer to two decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 5P

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Step 1: Introduction

The present value of annuity is the current worth of periodic annuity payments. The annuity payments are discounted at a discount rate to calculate the present worth. The higher discount rate indicates a lower present worth.

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