If a 5-year ordinary annuity has a present value of $1,000, and if the interest rate is

Question:

If a 5-year ordinary annuity has a present value of $1,000, and if the interest rate is 12 percent, what is the amount of each annuity payment?

Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...