Scupper Molly invested $1,800 semiannually for 23 years at 8% interest compounded semiannually. What is the value of this annuity due? (p. 319)

what is twice a year for 15 years

To find the value of an annuity due, we'll need to use the formula for the future value of an annuity due. The formula is:

FV = P * [(1 + r)^n - 1] / r

Where:
FV = Future value of the annuity
P = Periodic payment (investment or deposit)
r = Interest rate per period
n = Total number of periods

In this case, Scupper Molly invested $1,800 semiannually for 23 years at 8% interest compounded semiannually. Since the investment is made semiannually, we need to adjust the interest rate and the number of periods.

First, let's calculate the interest rate per semiannual period. The annual interest rate is 8%, so the semiannual interest rate would be half of that, which is 4% or 0.04.

Next, let's calculate the total number of semiannual periods. Since Scupper Molly invested for 23 years, and each year has 2 semiannual periods, the total number of semiannual periods would be 23 * 2 = 46.

Now we have all the values we need to plug into the formula:

P = $1,800
r = 0.04
n = 46

Using the formula and performing the calculation, we get:

FV = $1,800 * [(1 + 0.04)^46 - 1] / 0.04

Now you can perform the calculation to find the value of this annuity due on page 319.