Answer:
$77,558.55
Step-by-step explanation:
A fix periodic payment for specific period of time.
We need to calculate the present value annuity to determine the value of investment today.
Present value of annuity = P x ( 1 - ( 1 + r )^-n / r )
where
P = Periodic payment = $12,000
r = interest rate = 10% / 2 = 5%
n =numbers of payment = 4 years x 2 = 8 payments
Placing values in the formula
Investment Value today = $12,000 x ( 1 - ( 1 + 5% )^-8 / 5% )
Investment Value today = $77,558.55
