Mike O'Brien plans to deposit $1,250 at the end of every six months for the next eight years at 6% interest compounded semiannually. What is the value of Mike's annuity at the end of eight years?
What will be an ideal response?
$25,196.13
Table 13-1, Interest = 6% / 2 = 3%, 8 × 2 = 16 periods; $1,250 × 20.1569 = $25,196.13.
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