Find the present value of $20,000 due in 6 years at the given rate of interest. (Round your answers to the nearest cent.)

Question

a) 3%/year compounded semiannually 

$_________

b)3%/year compounded quarterly 

$__________

Answer 1

20000 = p(1 + 0.03/2)²⁽⁶⁾

20000 = p(1 + 0.03/4)⁴⁽⁶⁾