Multiple Choice
Suppose payments will be made for years at the end of each semiannual period into an ordinary annuity earning interest at the rate of 8.5%/year compounded semiannually. If the present value of the annuity is $40,000, what should be the size of each payment? Round your answer to the nearest cent.
A) R = $5,403.70
B) R = $5,498.53
C) R = $5,417.65
D) R = $5,441.18
Correct Answer:

Verified
Correct Answer:
Verified
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