The required semiannual annuity payment is $10,256.72
What is future value of an annuity?
The future value of an annuity is the accumulated amount in the future that could be achieved by making a fixed periodic savings, it is a semiannual fixed payment that is required in this case.
The future value formula for an ordinary annuity provided below can be used to determine the semiannual payment needed:
FV=PMT*(1+r)^N-1/r
FV=future value=$500,000
PMT=semiannual payment required=unknown
r=semiannual interest rate=6.3%/2=3.15%=0.0315
N=number of semiannual payments in 15 years=15*2=30
$500,000=PMT*(1+0.0315)^30-1/0.0315
$500,000=PMT*(1.0315)^30-1/0.0315
$500,000=PMT*(2.53557796686568000-1)/0.0315
$500,000=PMT*1.53557796686568000/0.0315
PMT=$500,000/1.53557796686568000*0.0315
PMT=$10,256.72
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