Answer:
$527,615.08
Explanation:
The formula that describes the present value of an investment compounded semiannually is:
[tex]PV = \frac{FV}{(1+\frac{r}{2}^{(2*t)})}[/tex]
For a future value of $630,000 obtained at a 6% annual rate for 3 years, the present value is:
[tex]PV = \frac{630,000}{(1+\frac{6}{2}^{(2*3)})}\\PV=\$527,615.08[/tex]
Maria's gift is worth $527,615.08 today.
