Annual payments of P12,500 with an interest rate of 10.5% compounded semi-annually for 6 years. Simple or General Annuity?

• 41424.5

SOLUTION:

according to the statement, the finally payment is:

P = 12500 × (1+105%)6ײ

= 12500 × (1105%)¹²

= 41424.5 (P)

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