The value at time 0 of $16,500 to be received in 5 years where the discount rate is 5 percent, compounded semiannually, is
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A=P(1+r/n)^nt (formula for compound interest)
.where A=final amount,P=present amount,R=discount rate and t=time in years
A=$21,226.2 , this is the final amount after 5 years
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