Solution
Amount payable annually = $12000
Term (Years) = 4
Interest Rate = 5%
Therefore, Present Value of Annuity of $1 @5% for 4 Years = 3.55
Therefore, Present Value of Annual Payment = $12000 X 3.55
= $42600
Answer: Option (D) $42600
QUESTION 13 PRESENT VALUE TABLES Table A: PV of $1 (Annuity) Table B: Present Value of...
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