Find the present value of an annuity of $6000 paid at the end of each 6-month period for 8 years if the interest rate is 5%, compounded semiannually. (Round your answer to the nearest cent.)
Present value of annuity = P * [( 1 - ( 1+R)^-N) / R
Where, P = Payment
R = Rate of interest per period
N = Number of periods
= 6000 * [( 1 - ( 1 +(5%/2))^-(8*2)] / (5%/2)
= 6000 * [( 1 - ( 1 +2.50%)^-16] / 2.5%
= 6000 * [( 1 - 0.673624) / 0.025]
= 6000 * 13.05504
= 78330.02
Present value of annuity = 78330.02
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