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An annuity with a cash value of $13,500 earns 7% compounded semi-annually. End-of-period semi-annual payments are...

An annuity with a cash value of $13,500 earns 7% compounded semi-annually. End-of-period semi-annual payments are deferred for 7 years, and then continue for 8 years. How much is the amount of each payment?

Answer: Each payment is $ _1806.86___

NOTE*: i would like to know how to get to that answer through a financial calculator in BGN MODE.

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Answer #1
Step-1:Calculation of future value 7 Years from now
Future value =fv(rate,nper,pmt,pv) Where,
= $ 21,852.38 rate = 3.50%
nper = 14
pmt = 0
pv = $       -13,500
Step-2:Calculation of each semi annual payment
Semi annual payment =pmt(rate,nper,-pv) Where,
= $ 1,806.86 rate = 3.50%
nper = 16
pv = $         21,852
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