Answer:
$17,277.07
Step-by-step explanation:
Present value of annuity is the present worth of cash flow that is to be received in the future, if future value is known, rate of interest is r and time is n then PV of annuity is
PV of annuity = [tex]\frac{P[1-(1+r)^{-n}]}{r}[/tex]
= [tex]\frac{3000[1-(1+0.10)^{-9}]}{0.10}[/tex]
= [tex]\frac{3000[1-(1.10)^{-9}]}{0.10}[/tex]
= [tex]\frac{3000[1-0.4240976184]}{0.10}[/tex]
= [tex]\frac{3000(0.5759023816)}{0.10}[/tex]
= [tex]\frac{1,727.7071448}{0.10}[/tex]
= 17,277.071448 ≈ $17,277.07
