Present Value: P=?
Amount per Payment at the end of each 6 months: A=$820
Number of periods: n=14*2→n=28
Interest rate: i=5%=5/100→i=0.05
Compounded Semiannually
P=A{[1-(1+i)^(-n)]/i}
P=$820{[1-(1+0.05)^(-28)]/0.05}
P=$820{[1-1.05^(-28)]/0.05}
P=$820[(1-0.255093637)/0.05]
P=$820(0.744906363/0.05)
P=$820(14.89812725)
P=$12,216.46435
P=$12,216.46
Answer: Present Value is $12,216.46
