Question: Find the present value (one period before the first payment) of an annuityimmediate that lasts five years and pays $3,000 at the end of each

Find the present value (one period before the first payment) of an annuityimmediate that lasts five years and pays $3,000 at the end of each month, using a nominal interest rate of 3% convertible monthly. Then repeat the problem using an annual effective discount rate of 3%. Which is higher? Why?

$166,957.07 (using i/12= 3%), $166,751.66 (using d=3%) These are the answers but I'm not sure of how to go about the formula.

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