Question

what is the present value of the following annuity?$1753 every half at the beginning of the period for the next 4years discounted back to the present at 8.53percent per year compounded semiannually

Answer 1

Periodic annuity every half year starting at the beginning of the period = $1753

Calculating the present Value of annuity using present value annuity due formula:-

Where, C= Periodic Annuity = $1753

r = Periodic Interest rate = 8.53%/2 = 4.265%

n= no of periods = 4 years*2 = 8

Present Value = $12,172.33

If you need any clarification, you can ask in comments.     

If you like my answer, then please up-vote as it will be motivating