In a General Annuity the interest period does not match the payment period.

That means that each question requires a two-step solution

Step 1 - find the equivalent interest rate to match the payment period. Do not round this interest rate

Step 2 - use the appropriate formula, Sn or An.

If you do not recognize the general annuity and skip Step 1, you will score 0% on Test 4.

A contract can be fulfilled by making an immediate payment of

$3190,

or equal payments at the end of every

six months

for

5

years. What is the size of the

semi-annual

payments at

11%

per annum compounded annually?

Question content area bottom

Part 1

The

semi-annual

payments are

$enter your response here.

(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)