Question: Solve this problem using each method below. How much would you pay today for an annuity that pays you $5,000 for 4 years starting

Solve this problem using each method below. How much would you pay

Solve this problem using each method below. How much would you pay today for an annuity that pays you $5,000 for 4 years starting next year? Assume an interest rate of 12%. A. Use 4 different "single payment" PV calculations - 1 for each year. B. Use the PV Annuity formula. C. Use the sum of a finite geometric series (See 11.4.3). Two options here: a. Subtract the initial payment. Be careful about "n" and "k". Note that 11.4.3 has the b. first payment starting today. This situation starts 1 year from now. Use "a" as (a/(1+r)).

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