Find the present value of 3 annual payments of $90 per annum where the first payment is made 1 year from now. So there are 3 annual payments from t=1 to t=3 inclusive. The discount rate is 5% pa. The present value of these payments is:

a.

$1,800

b.

$1,554.91

c.

$319.14

d.

$245.09

e.

$233.42