Final answer:
The question asks for the present value of an ordinary annuity with semiannual deposits, but lacks the correct interest rate to do the calculation. Typically, you would use the present value of an annuity formula, taking into account the payment per period, the interest rate per period, and the total number of periods.
Step-by-step explanation:
The question is asking to calculate the present value of an ordinary annuity that entails making semiannual deposits for a certain period at a given interest rate. To calculate the present value of such an annuity, one would typically use the present value of annuity formula, which is:
PV = Pmt x [(1 - (1 + r)^-n) / r]
Where:
- PV is the present value of the annuity
- Pmt is the payment amount per period
- r is the interest rate per period
- n is the total number of periods
In the provided case, the question contains typos or irrelevant numbers that cannot reliably be used to calculate the present value. Therefore, without the correct interest rate and assuming that the interest rate is the missing piece of information required to solve this problem, we are unable to provide an accurate present value.
An example of a correct calculation with a hypothesized 8% annual interest rate compounded semiannually (4% per period) for 6 years (12 periods total) and a semiannual payment of $23,425 would be:
PV = $23,425 x [(1 - (1 + 0.04)^-12) / 0.04]
Please note that you need to insert the correct interest rate and confirm the numbers are accurate before computing the final answer.