If i 08 calculate the present value of an annuity that pays

If i = .08, calculate the present value of an annuity that pays $100 at times: 2, 4, 6, 8, 10, 12, 14, 16, 18, 20

present value of annuity can be writen as PVOA

PVOA = PMT [(1-(1/(1+r)ⁿ))/r]

where PMT means the amount of each annuity payment =100

r = the interest rate.=0.08

n = the number of periods over which payments are to be made.

= 2,4,6,8,10,12,14,16,18,20 total there 10periods.

substitute all the values in the above equation

= 100[(1-(1/(1+0.08)¹⁰))/0.08]

present value = $995.61