a. What is the present value of a 3-year annuity of $100 if the discount rate is

Question:

a. What is the present value of a 3-year annuity of $100 if the discount rate is 6%?

b. What is the present value of the annuity in (a) if you have to wait 2 years instead of 1 year for the first payment?

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,... Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...