#### Answer

$\$ 13,007.94$

#### Work Step by Step

We are given:
$R=1000, i= \frac{0.09}{2}=0.045, n=20$
The present value of an annuity is given by:
$A_{p}=R \frac{1-(1+i)^{-n}}{i}$
$A_{p}=1000\frac{1-(1+0.045)^{-20}}{0.045}=\$ 13,007.94$

Published by
Brooks Cole

ISBN 10:
1305115546

ISBN 13:
978-1-30511-554-5

$\$ 13,007.94$

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