Suppose the interest rate is 8.0% APR with monthly compounding. What is the present value of an annuity that pays $100 every six months for five years? (Note: Be careful not to round any intermediate steps less than six decimal places.)
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
Suppose the interest rate is
APR with monthly compounding. What is the present value of an
every
months for
years? (Note: Be careful not to round any intermediate steps less than six decimal places.)
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