please answer using excel and explain

5) You are offered an investment that will pay you $1,000 per year for 20 years. How much should you be willing to pay for this annuity if you can earn a rate of 8.5% per year on similar investments? In this case we need to solve for the present value of this annuity since that is the amount that you would be willing to pay today. Use Excel's =PV(RATE,NPER,PMT,[FV],[TYPE]) function. 3 RATE is 8.5%, NPER is 20 , PMT is $1,000, and TYPE is 0 since payments are made at the end of the period. If the [type] argument is omitted, it takes on the default value of 0