Answer:
PV= $100,402.86
Step-by-step explanation:
To calculate the present value, first, we need to determine the future value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= semiannual deposit
n=12*2= 24 semesters
i= 0.12/2= 0.06
FV= {8,000*[(1.06^24) - 1]} / 0.06
FV= $406,524.62
Now, the present value:
PV= FV / (1+i)^n
PV= 406,524.62 / 1.06^24
PV= $100,402.86
