Find the present value of an ordinary annuity with payments of $10,938 every 6 months for 8 years at 9.2% compounded semiannually. What is the present value? $ (Round to the nearest cent.)
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Step 1: The present value of an ordinary annuity is given by the formula: $$PV = P \frac{1 - (1 + i)^{-n}}{i}$$ where: * $PV$ is the present value * $P$ is the payment amount * $i$ is the interest rate per period * $n$ is the number of periods Show more…
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