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The current term structure of interest rates is shown in the table below. Years 1 2 3 4 5 6 Spot Rate 3.0% 3.5% 3.9%
The current term structure of interest rates is shown in the table below.
| Years | 1 | 2 | 3 | 4 | 5 | 6 |
| Spot Rate | 3.0% | 3.5% | 3.9% | 4.4% | 5.2% | 5.5% |
In one year, a 3-year annuity-immediate will be issued. The annuity will make annual payments of $1,000. Find the present value of the annuity at the time of issue.
(A) 2585
(B) 2667
(C) 2747
(D) 2796
(E) 2880
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