We will receive an ordinary annuity payment of $$3,000$ on November $10$ for the next $5$ years. The annuity is earning an interest rate of $8\%,$ compounded annually. We want to calculate the present value of this annuity.

Table B$\mathrm{.}1,$ Present Value of $$1$: i$=8\%,$ n$=5,$ PV factor $=\mathrm{.}6806$

Table B$\mathrm{.}2$ Future Value of $$1$: i$=8\%,$ n$=5,$ FV factor$=1\mathrm{.}4693$

Table B$\mathrm{.}3$ Present value of an Annuity: i$=8\%,$ n$=5,$ PV factor $=3\mathrm{.}9927$

Table B$\mathrm{.}4$ Future Value of an Annuity: i$=8\%,$ n$=5,$ FV factor $=5\mathrm{.}8666$

What is the correct factor we should use to calculate?

What is the present value of this annuity?