Math Problem Statement
A friend wants to borrow money from you. He states that he will pay you $4,400 every 6 months for 12 years with the first payment exactly 7 years and 6 months from today. The interest rate is an APR of 6.7 percent with semiannual compounding. What is the value of the payments today?
Solution
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Math Problem Analysis
Mathematical Concepts
Finance
Present Value
Annuities
Interest Compounding
Formulas
Present Value of Annuity formula
Theorems
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Suitable Grade Level
Advanced
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