 Hello friends and how are you all doing today? The question says, find the present value of an annuity of Rs 1200 payable at the end of each 6 months for 3 years when the interest is 8% per annum compounded semi-annuity. Here we need to use the value of 1.04 raised to the power 6 as 1.265.3. Here let us write down firstly whatever is given to us we are given the semi-annual installment that is Rs. 1200. The rate of interest that is small letter R is given to us as 8% per annum which need to be converted semi-annually so it will be 4% semi-annually that is half of 8% and we are given the term that is the time that we will be writing as N is given to us as 3 years which means 3 into 2 6 semi. Now we know that the formula to find out the present value of an annuity is equal to R into 1 minus 1 plus R raised to the power minus N upon R. We have the value of R capital R small R and so we have 1200 into 1 minus 1 plus R that is 1.0.04 that is equal to 4% itself raised to the power minus 6 upon 0.04 which can be written as 1200 upon 0.04 it can be taken out and we have 1 minus 1 upon 1.04 raised to the power 6 as we have been given the value of 1.04 raised to the power positive 6 that is why we have reciprocal it. So we have it as 30,000 that is on dividing it 1 minus 1 upon its value is given to us in the question as 1.2653. So we have 30,000 into 1.2653 minus 1 upon 1.2653 which is equal to 30,000 into 0.2653 upon 1.2653 and on calculating simplifying this expression we have the answer as rupees 6,290 approximately and this is the required answer to the given question. So hope you enjoyed this session and understood it well. Do remember the formula to find out present value of an annuity and you will be given the value of R that is the periodic payment, the small R that is weight of interest and N that is the time period in the question. So have a nice day ahead.