A 5-year annuity of ten $12,000 semiannual payments will begin 11 years from now, with the first payment coming 11.5 years from now.

a. If the discount rate is 6 percent compounded monthly, what is the value of this annuity 7 years from now?

• $80,414.31
• $102,165.51
• $85,374.09
• $40,411.90
• $78,806.02

b. What is the current value of the annuity?

• 52,891.29
• $102,165.51
• $56,153.51
• $26,580.31
• $51,833.46