If an account is increasing at a rate of 3.3% compounded semiannually, what is the exact value of in the following present valueordinary annuity formula?PV-P1-(1+1)*a) 3.3b) 0.033/100c) 0.033/2d) 0.33/2

Answer:The correct answer is C. 0.033/2Step-by-step explanation:1. Let's review the data given to us for solving the question:Annual interest rate = 3.3% compounded semiannually2. Let's find the exact value of the rate:Number of periods (n) = n/2, given that periods are semesters and not yearsAnnual interest rate (r) = 3.3% = 3.3/ 100 = 0.033For using the correct value in the present value annuity formula, we also have to divide the annual interest rate because the interest is compounded semiannually or every six months, what it means:0.033/2The correct answer is C. 0.033/2