Answer:
The present value machine = $48351.13
Explanation:
Given the annuity amount = $3809
Total number of years for which the annuity is made = 21 years
The annuity is made every six months.
Interest rate = 15%
We have to find the present value of machine by using the above information. Here, below is the calculation.
The present value machine = Annuity × (1-1/(1+rate)^number of terms)/ rate
The present value machine = 3809*(1-1/(1+15%/2)^(21*2))/(15%/2)
The present value machine = $48351.13
