Find the present value of the ordinary annuity. (Round your answer to the nearest cent.) $1400/semiannual period for 8 years at 5%/year compounded semiannually $
Find the present value of the ordinary annuity. (Round your answer to the nearest cent.) $1400/semiannual period for 8 years at 5%/year compounded semiannually $
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
Related questions
Question
Find the present value of the ordinary annuity. (Round your answer to the nearest cent.)
$1400/semiannual period for 8 years at 5%/year compounded semiannually
$
Expert Solution
Step 1
Sol:-
To find the present value of the ordinary annuity, we can use the formula:
PV = PMT * ((1 - (1 + r/k)^(-n*k)) / (r/k))
where PMT is the payment per period, r is the interest rate, k is the number of compounding periods per year, and n is the total number of periods.
Step by step
Solved in 2 steps
Recommended textbooks for you
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,
