Heisman Company will receive $1,600 every six months for eight years. The companys interest rate is 10%

Question:

Heisman Company will receive $1,600 every six months for eight years. The company’s interest rate is 10% compounded semiannually. Compute the present value of this annuity payment.

Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...