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Willis Co. will pay $100,000 at the end of 10 years. Plus, Willis will make 20 semi-annual interest payments of $6000 on June 30 and
Willis Co. will pay $100,000 at the end of 10 years. Plus, Willis will make 20 semi-annual interest payments of $6000 on June 30 and December 31 during the next 10 years. If the current interest rate is 10%, what would be the present value of Willis' payments (compounded semi-annually)?
A: $112,288.84 C: $113,327.25
B: $112,462.21 D: $187,235.52
I know the answer is B. What is the work involved to get that answer?
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