The present value of eight $5,000 semiannual payments invested for 4 years at 8% compounded semiannually is $33,663.50.(PV of $1,FV of $1,PVA of $1,and FVA of $1) (Use appropriate factor(s)from the tables provided.) \bold{ ext{(Use appropriate factor(s)from the tables provided.)}} (Use appropriate factor(s)from the tables provided.)

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The present value of eight $5,000 semiannual payments invested for 4 years at 8% compounded semiannually is $33,663.50.(PV of $1,FV of $1,PVA of $1,and FVA of $1)  (Use appropriate factor(s)from the tables provided.) \bold{	ext{(Use appropriate factor(s)from the tables provided.)}} (Use appropriate factor(s)from the tables provided.)

Agatha Nwokolo · Accepted Answer

Final Answer : True, Explanation :  Based on the given information, we can use the Present Value of an Annuity (PVA) table to find the appropriate factor. The number of periods is 8 (8 semiannual payments over 4 years), the interest rate is 4% (8% divided by 2 since it is compounded semiannually), and the payment amount is $5,000. Using the PVA table, we can find the factor to be 3.36635. Multiplying this factor by the payment amount gives us $18,331.75. However, since we want the present value of all 8 payments, we need to multiply this result by 8, giving us a total present value of $146,654. Finally, we use the Present Value of a Lump Sum table to find the appropriate factor for a 4-year investment at 4% interest (again, because it is compounded semiannually) and multiply this factor by the total present value of the annuity to get the final answer of $33,663.50.

The present value of eight $5,000 semiannual payments invested for 4 years at 8% compounded semiannually is $33,663.50.(PV of $1,FV of $1,PVA of $1,and FVA of $1) $provided.)\bold{\text{(Use appropriate factor(s)from the tables provided.)}}$

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