Use Table 12-2 from your text to find how much should be ...

[craiczarry]

Use Table 12-2 from your text to find how much should be deposited now at 8 interest, compounded semiannually, to yield an annuity payment of 400 at the BEGINNING of each six months, for 2 years.
 A) 1,510.04
  B) 1,110.04
  C) 1,451.96
  D) 1,354.22

Question 2

Robert wants to have 2,300 at the END of every three months for 8 years. The bank pays 8 interest, compounded quarterly. Robert calculates that the present value of the ordinary annuity is 53,977.16. What would be the present value if payments were to be received at the BEGINNING of every period rather than the END? (Use Table 12-2 from your text)
 A) 52,016.20
  B) 55,056.71
  C) 55,344.83
  D) 55,986.21

[raenoj]

Answer to Question 1

A

Answer to Question 2

B