Find the present value of an ordinary annuity with deposits of $12,961 every 6 ?months for 9 years at 4.4% compounded semiannually.

What is the present? value?

present value of annuity formula

=PMT*((1-(1+(r/m))^(-n*m))/(r/m))

PMT is the semi annual or periodic deposit

r is the annual interest rate

m is the number of frequency periods in a year

n is the number of years

so going by above formula, we get

Present value

=PMT*((1-(1+(r/m))^(-n*m))/(r/m))

=12961*((1-(1+(4.4%/2))^(-9*2))/(4.4%/2))

=190937.79 (answer)