Please describe three $(3)$ methods for calculating the value of an annuity of $$100$

per year for $5$ years starting at t$1$ using a $6\%$ discount rate.

$$ What is the PV of this annuity?

$$ Draw a clearly marked number line demonstrating how this annuity is the difference

between two perpetuities and show your calculations.

$$ Generally speaking, what is the purpose of discounting future cash flows?