Based on the amount the annuity pays per month and the APR, the value of the annuity today is $133,349.85.
What is the present value of the annuity?
First, find the present value of the annuity at 5 years:
= 1,850 x present value interest factor of annuity, 60 months, 8/12%
= 1,850 x 49.32
= $91,242
Then find the present value of the annuity from 5 years till date:
= (1,850 x present value interest factor of annuity, 60 months, 12/12%) + ( 91,242) / (1 + 1%)⁶⁰)
= (1,850 x 44.955) + ( 91,242) / (1 + 1%)⁶⁰)
= $133,349.85
Find out more on the present value of annuities at https://brainly.com/question/24097261.
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