Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value

Question:

Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2018, of a five-period annual annuity of $5,000 under each of the following situations:

1. The first payment is received on December 31, 2019, and interest is compounded annually.

2. The first payment is received on December 31, 2018, and interest is compounded annually.

3. The first payment is received on December 31, 2019, and interest is compounded quarterly.

Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...