# Suppose that your bank pays 10% interest, compounded semiannually. Find how much should be deposited now to yield

Suppose that your bank pays 10% interest, compounded semiannually. Find how much should be deposited now to yield an annuity payment of

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