The present value of four $10,000 semiannual payments invested for 2 years at 12% compounded semiannually is $43,746. (^PV^of^$1, ^FV^of^$1, ^PVA^of^$1, and ^FVA^of^$1) (Use appropriate factor(s) from the tables provided.)

Question

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The present value of an annuity can be calculated using the present value of annuity formula. For semiannual payments at 12% compounded semiannually, the rate per period is 6% (12%/2), and there are 4 periods (2 years * 2). The present value factor for 6% over 4 periods is needed to calculate the correct present value, which is not $43,746.

The Present Value of Four $10,000 Semiannual Payments Invested for 2