Ans:- we will use the Present Value of the annuity formula to find the answer.
PV of an annuity is given by P*[1-(1+r)^-n] / r, where P is the Periodic Payment, r is the rate of return and n is the number of periods.
(a) PV = $8700*[1-(1+0.07)^-9] / 0.07 = $56,682.52
(b) PV = $17,800*[1-(1+0.08)^-4] / 0.08 = $58,955.86
(c) PV = $27,500*[1-(1+0.11)^-12] / 0.11 = $178,539.79
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