Problem:
Using the appropriate PV Table and assuming a 12% annual interest rate, determine the present value on December 31, 2009 of a five period annual annuity of 10000 under each of the following situations:
a. The first payment is received on December 31, 2010, and interest is compounded annually.
b. The first payment is received on December 31, 2009, and interest is compounded annually.
c. The first payment is received on December 31, 2009, and interest is compounded quarterly.