Identify all the variables that require conversion

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Reference no: EM132008741

Describe the method you would use to convert the key variables of an 8% APR annuity with $1,000 annual payments at the end of each year for 4 years to semiannual compounding for use in the annuity formula.

(a) identify all the variables that require conversion

(b) show the method for each variable’s conversion to semiannual and (c) show your final annuity formula with converted variables after adjustment for semiannual compounding.

Reference no: EM132008741

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