Answer
$20975.2
Work Step by Step
We are given $P=960, i=\frac{0.05}{2}=0.025, n=16\times2=32$
the formula is $P=R[\frac{1-(1+i)^{-n}}{i}]$
so $\rightarrow P=960[\frac{1-(1+0.025)^{-32}}{0.025}] \approx \$ 20975.2$
Calculus with Applications (10th Edition)
by Lial, Margaret L.; Greenwell, Raymond N.; Ritchey, Nathan P.
Published by
Pearson
ISBN 10:
0321749006
ISBN 13:
978-0-32174-900-0
Chapter 12 - Sequences and Series - 12.2 Annuities: An Application of Sequences - 12.2 Exercises - Page 622: 18
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