You are given: Effective date of a decreasing annuity: 1/1/12. Date of the first...

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You are given: • Effective date of a decreasing annuity: 1/1/12. • Date of the first payment: 7/1/12 Frequency of payments: Semiannually • Number of payments: 20 Semiannually decrease in payment: $100 . Interest rate: 5% per year, compounded semiannually • Present value of remaining payments as of 1/1/18 (after 1/1/18): $30000 Calculate the first semiannual payment X. You are given: • Effective date of a decreasing annuity: 1/1/12. • Date of the first payment: 7/1/12 Frequency of payments: Semiannually • Number of payments: 20 Semiannually decrease in payment: $100 . Interest rate: 5% per year, compounded semiannually • Present value of remaining payments as of 1/1/18 (after 1/1/18): $30000 Calculate the first semiannual payment X.

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To find the first semiannual payment X we need to first calculate the present value of the de... View the full answer