Answer:
$1,256,000
Explanation:
Data provided in the question:
Number of semiannual payments received = 16
Amount of each payment = $100,000
Annual interest rate = 6%
Thus,
Semiannual interest rate = [tex]\frac{6\%}{2}[/tex] = 3% = 0.03
Now,
Payment = Amount × [tex]\frac{(1-(1+i)^{-n})}{i}[/tex]
or
Payment = $100,000 × [tex]\frac{(1-(1+0.03)^{-16})}{0.03}[/tex]
Payment = $100,000 × 12.56
or
Payment = $1,256,000
