Answer:
PV= $114,699.21
Explanation:
Giving the following information:
Annual payment= $10,000
Number of years= 20
Interest rate= 6%
To calculate the present value, we need to use the following formula:
PV= A*{(1/i) - 1/[i*(1 + i)^n]}
A= annual payment
PV= 10,000*{(1/0.06) - 1 / [0.06*(1.06^20)]}
PV= $114,699.21
