Present and Accumulated Values of an Annuity-Immediate

Problem 15.1 Consider an investment of $5,000 at 6% convertible semiannually. How much can be withdrawn each half−year to use up the fund exactly at the end of 20 years? Solution. 5,000 = Xa_{\overline{40|}0.03} \\ \implies X = 216.31 Problem 15.2 The annual payment on a house is$18,000. If payments are made for 40 years, how much is the house worth assuming annual interest rate of 6%? Solution....