Answer
$\$ 2601.59$
Work Step by Step
We are given:
$R=200, i=\frac{0.09}{2}=0.045, n=20$
The present value of an annuity is given by:
$A_{p}=R \frac{1-(1+i)^{-n}}{i}$
$A_{p}=200\frac{1-(1+0.045)^{-20}}{0.045}=\$ 2601.59$
College Algebra 7th Edition
by Stewart, James; Redlin, Lothar; Watson, Saleem
Published by
Brooks Cole
ISBN 10:
1305115546
ISBN 13:
978-1-30511-554-5
Chapter 8, Sequences and Series - Section 8.4 - Mathematics of Finance - 8.4 Exercises - Page 622: 13
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