An annuity will pay eight annual payments of $100, with the firs

t payment to be received one year from now. If the

interest rate is 12 percent per year, what is the present

value of this annuity? Use the

appropriate table

located at the

end of the textbook to solve this problem.

LO7

a.

$497

b.

$556

c.

$801

d.

$897