Find the present value of $40000 due in 4 years at the given rate of interest: 8% / year compounded semiannually.

So far I have used the formula P=A(1+i)^-n and my result was $29,107.45. The answer in the book says $80, and $580. What formula or step am I missing? Thank you.

Question

Find the present value of $40000 due in 4 years at the given rate of interest: 8% / year compounded semiannually.

So far I have used the formula P=A(1+i)^-n and my result was $29,107.45. The answer in the book says $80, and $580. What formula or step am I missing? Thank you.

anonymous · Answer

Please, I need help. I need the steps to do this.