12.On 12-31-18, Austin entered into an agreement that required Austin to pay a supplier $2,000 every year on 12-31 until 2038. The agreement required Austin to make the first annual payment on 12-31-23. Assume the market rate of interest for Austin is 5%. As of 12-31-18 what was the present value of Austin's obligation?\

If you are using the present value tables in chapter 6 to calculate the present value amounts, show the present value factor (PVF) from the tables that you used in your calculation.

If you are using a calculator to calculate the present value amounts, show the following:

1. The type of problem you are solving, i.e., lump sum OR annuity due OR ordinary annuity OR deferred annuity.

2. The interest rate (i) you used.

3. The single n or the multiple nsthat you used.