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A 10-year annuity pays $1,300 per month, and payments are made at the end of each month. The interest rate is 8 percent compounded monthly

A 10-year annuity pays $1,300 per month, and payments are made at the end of each month. The interest rate is 8 percent compounded monthly for the first five years and 5 percent compounded monthly thereafter.

What is the present value of the annuity?

Multiple Choice

$112,559.30

$108,145.21

$110,352.25

$1,324,227.04

$133,001.88

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