Answer:
present value of annuity is $61445.66
Explanation:
given data
annuity P = $1,000 per year
time t = 10 year
rate r = 10% = 0.01
to find out
present value of annuity
solution
we will apply here present value formula that is
present value = P ( 1 - ( 1 + r )^-t ) / r ..........................1
put here all value for r, t and P in equation 1
present value = P ( 1 - ( 1 + r )^-t ) / r
present value = 1000 ( 1 - ( 1 + 0.1 )^-10 ) / 0.01
present value = 61445.66
so present value of annuity is $61445.66