Amount of Each Cash Flow
Response to the following problem:
On January 1, 2010, Philip Holding invests $40,000 in an annuity to provide eight equal semiannual payments. Interest is 10%, compounded semiannually.
Required
Compute the equal semiannual amounts that Holding will receive, assuming that the first withdrawal is to be received on
1. July 1, 2010
2. January 1, 2010
3. July 1, 2013
4. January 1, 2015