The present value of $12,000 for six years compounded at 6% semiannually is

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08-12-2016
Mathematics

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The present value of $12,000 for six years compounded at 6% semiannually is

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SJ2006 SJ2006 · Answer 1 · 2016-12-12T18:00:18+01:00

SJ2006 SJ2006

12-12-2016

Semi-annually means, 2 times in 1 year, so 6 year = 12 times.
Then, it would be: P * R * T /100
12000 * 6 * 12 / 100 = 8640

So, your final answer is $8640

Hope this helps!

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