## Related questions with answers

Question

Find the present value of an annuity due that pays $\$ 25,000$ every $6$ months for the next $2 \frac{1}{2}$ years if money is worth $6.2 \%$ compounded semiannually.

Solutions

VerifiedSolution A

Solution B

Answered 1 year ago

Step 1

1 of 9In this exercise, the task is to determine the present value of an annuity due considering the given input data.

Answered 1 year ago

Step 1

1 of 4To determine the present value of an annuity due we will use this equation below.

$A_{n,due}=R\bigg[\frac{1-(1+i)^{-n}}{i}\bigg](1+i)$

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