Hello, jhonwashington!

Two errors . . .

Find the present value of an annuity that pays $6000

at the end of each 6-month period for 8 years

if the interest rate is 8% compounded semiannually.

According to my book, the answer is $69,913.77 . . . . Right!

I don't understand why?

according to my method i get another answer..

An = 6000 [ 1- (1+0.01)^-16/.01 = 90,000 . . . . Incorrect formula

. . and incorrect interest rate.

The rate is 8% compounded semiannualy: .

The formula is: .

And we have: .