Using technology, determine the present value given that you make semi-annual payments of $2,527 at 6.1% compouded semi-annually over a 6 year period. Round your answer to the nearest cent.

There are 6 × 2 = 12 semi-annual payments, and the interest rate per period is 6.1% ÷ 2 = 3.05%. Using the present value of an ordinary annuity, PV = 2,527 × [1 − (1.0305)^−12] ÷ 0.0305 ≈ $25,078.86. The best answer is choice a, $25,078.86.

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