Question
What is the present value of an annuity consisting of 10 semi-annual payments of $390, with the first payment to occur six months from now,
What is the present value of an annuity consisting of 10 semi-annual payments of $390, with the first payment to occur six months from now, if the interest rate is 12% p.a.? (Hint: You need to calculate the semi-annual interest rate before you can use the annuity formula.)
Select one:
a.$2468
b.$3043
c.$2204
d.$2870
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
11th Canadian Edition
1259024970, 978-1259265921
