Answer:
The present value of the annuity will be 8,215
Explanation:
This will be the case of an annuity.
There is an annuity of 450 dollars, at a 5% rate for 50 years.
[tex]C \times \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
c= 450
rate = 0.05
time = 50
[tex]450 \times \frac{1-(1+0.05)^{-50} }{0.05} = PV\\[/tex]
PV = $8,215.1665
rounding to nearest dollar = $8,215
