Using the formula: Present value S/(1i)n where ‘‘i’’ is the interest rate in percentage, ‘‘n’’ is the number of periods, and ‘‘S’’ is the starting amount, the following table is produced:

Based on the table, what is the value of an annual income flow of $1,300 each year over the next three years at 12%?

a. $3122.60

b. $3900.00

c. $3497.00

d. 36%

Periods 10% 12% 14% 12345 0.909 0.893 0.877 0.826 0.797 0.769 0.751 0.712 0.675 0.683 0.636 0.592 5 0.621 0.597 0.519