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The present value of $100 per year received for 10 ye ars discounted at 8 percent is closest to $177. S671 © $362 $362 D $425

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Answer #1
Payment made end of each Year $100
Time in years 10 Years
Interest Rate 8% p.a
Discounted Value of annuity= A × 1 - 1
(1 + r)n
r
$100 × 1- 1
(1 + 0.08)10
0.08
= $ 671

Answer is B. i.e. $ 671

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