Answer:
$50.75
Explanation:
The present value of an annuity is calculated using the formula below.
PV = P × 1 − (1+r)−n
r
In this case,
P is $10
r is 10% per year or 0.1 per year 0.05 twice per year
n is 6 compounds
PV = 10 x 1-(1+0.05)-6
0.05
PV = 10 x 1 - 7462153966
0.05
PV = $10 X(0.253746034/0.05)
PV = $10 X 5.07492068
PV = $50.7492
PV = $50.75
