Suppose that your bank pays 10% interest, compounded semiannually. Find how much should be deposited now to yield an annuity payment of RM400 at the END of every six months, for 4 years.
We Know that, PV of annuity = payment( 1 - (1+i)^-n )/i ,
= `\frac{400(1 - 1.05^{-8} )}{0.05 }`
= 2585.29