Answer:
The correct answer is "$44,013.89".
Explanation:
Given:
Investment per year,
= $5,700
Required return,
= 5%
As we know,
⇒ [tex]Present \ value=Investment \ per \ year\times Annuity \ factor[/tex]
Or,
⇒ [tex]Annuity \ factor=\frac{1-[\frac{1}{(1+k)}]^n }{k}[/tex]
then,
The present value of 10 annual payment will be:
= [tex]5700\times \frac{1-[\frac{1}{(1+.05)}]^{10} }{.05}[/tex]
= [tex]44013.89[/tex] ($)
