1.

Find the present value.

Amount per Payment: $820

Payment at the End of Each: 6 months

Number of Years: 14

Interest Rate: 5%

Compounded: Semiannually

Present Value: P=?

Amount per Payment at the end of each 6 months: A=$820

Number of periods: n=14*2→n=28

Interest rate: i=5%=5/100→i=0.05

Compounded Semiannually

P=A{[1 - (1+i) ^ (-n) ]/i}

P=$820{[1 - (1+0.05) ^ (-28) ]/0.05}

P=$820{[1-1.05^ (-28) ]/0.05}

P=$820[ (1-0.255093637) / 0.05]

P=$820 (0.744906363/0.05)

P=$820 (14.89812725)

P=$12,216.46435

P=$12,216.46

Answer: Present Value is $12,216.46