Homework Answers
Solution:
Let semiannual cash deposit = X
Period = 6 years
Nos of semiannual deposits = 6*2 = 12
Future value = $201,174.75
Interest rate = 12%, 6% Semiannual
Future value = X * cumulative FV Factor at 6% for 12 periods of annuity due = $201,174.75
X * 17.88214 = $201,174.75
X = $11,250
Hence amount of semiannual cash deposits = $11,250
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