Asked by Anonymous

Suppose that your bank pays 10% interest, compounded semiannually. Find how much should be deposited now to yield an annuity payment of RM400 at the END of every six months, for 4 years.
Answered by mathhelper
PV of annuity = payment( 1 - (1+i)^-n )/i , we have all the data
= 400(1 - 1.05^-8 )/.05
= 2585.29
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