Russell Company has acquired a building with a loan that requires payments of $20,000 every six months for 5 years.The annual interest rate on the loan is 12%.What is the present value of the building? (PV of $1,FV of $1,PVA of $1,and FVA of $1) $\text{(Use appropriate factor(s) from the tables provided.)}$

A) $72,096
B) $113,004
C) $147,202
D) $86,590
E) $200,000

Semiannually

Occurring twice a year, typically every six months, often used in the context of interest or dividend payment schedules or reporting periods.

Annual Interest Rate

The percentage rate charged or paid over a year for borrowing or saving money.

Present Value

The current value of a future amount of money or stream of cash flows given a specified rate of return, used in discounting to assess investment opportunities.