Answer to Question #73427 in Financial Math for Jacob

Question

Given $250,000 today, determine the equivalent series of 24 semiannual payments that could be generated beginning six months from today. Assume interest of 9 percent per year compounded semiannually.

Answer 1

Given $250,000 today, the equivalent series of 24 semiannual payments that could be generated beginning six months from today at interest of 9 percent per year compounded semiannually are:
P = (250,000*(1 + 0.09/2)^24)/24 = $29,958.5 per period.