document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1076875>Question 1076875</A>: <I><SPAN STYLE=\"word-break: break-all;\"> what is the present value annuity of 1500 payeble at the end of each 6 month period for 2 years if money with 8% compounded semi-annually.  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #691531 by </B><A HREF=/tutors/aboutme.mpl?userid=jorel1380><B>jorel1380(3719)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=jorel1380><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=jorel1380><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=691531\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> The typical annuity payment formula is thus: P= r(PV)/1-(1+r)^-n, where P=payment, PV=present value, r= interest rate per period, and n= total number of periods. Solving for present value, we get:<BR>\n" );
document.write( "P[(1-(1+r)^-n)/r]=PV<BR>\n" );
document.write( "So:<BR>\n" );
document.write( "1500[1-(1+.04)^-4/.04]=PV<BR>\n" );
document.write( "PV=5445 is your present value. &#9786;&#9786;&#9786;&#9786;<BR>\n" );
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