Compute the present value of annual cash payments of $600 per year, for 3 years, using a discount rate of 8%.

• • Present your final solution as a decimal approximation carried out to the second decimal point (e.g., $000.00).
• Explain the meaning of the problem and your solution in your own words.
• Explain your answers to the following questions:
  • If the rate in the problem was higher, would the solution be higher or lower?
  • If the time period in the problem was shorter, would the solution be higher or lower?