An annuity will pay eight annual payments of $100, with the first payment to be received one

Question:

An will pay eight annual payments of $100, with the first payment to be received one year from now. If the interest rate is 12 percent per year, what is the present value of this Use the appropriate table located at the end of the textbook to solve this problem
a. $497
b. $556
c. $801
d. $897
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...