Question: Use the table below to answer the following questions: Present Value of 1 Factor Present Value of an Annuity of 1 Factor Period 1/2 Yr

Use the table below to answer the following questions:
Present Value of 1 Factor Present Value of an Annuity of 1 Factor
Period 1/2 Yr Full-Yr 1/2 Yr Full-Yr
1 0.9449 0.8929 0.9449 0.8929
2 0.8929 0.7972 1.8378 1.6901
3 0.8437 0.7118 2.6814 2.4018
4 0.7972 0.6355 3.4786 3.0373
5 0.7533 0.5674 4.2319 3.6048
6 0.7118 0.5066 4.9437 4.1114
Assumption: Required annual effective rate (EPR) of return is 12%.

If an investment pays you $8500 every 6 months for 3 years, what is its present value?

a $44,471
b $42,021
c $36,302
d $40,831

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