Answer:
The present value is $21070.31
Explanation:
Given: semi-annual payments of $2,527 at 6.1% compounded semi-annually over a 6 year period.
We have to find the present value given that semi-annual payments of $2,527 at 6.1% compounded semi-annually over a 6 year period.
Given that payment is made semi annually that is 2 times in a year.
Given Payment made = $2527.
Rate of interest =6.1% compounded semi annually = 0.061
Time period = 6 years = 6 × 2 = 12
Thus,

Where A denotes the amount to pay
P is payment made
t is time period
i is interest rate
Substitute the values, we get,

Cross multiply and Solve for A, we get,

A=21070.306476
Thus, the present value is $21070.31