Answer:
$ 508.03
Explanation:
To calculate present value of an annuity, N, we can use the formula;
[tex]N=\frac{A}{(1+r)^n}[/tex]
From the question, the future value of the annuity is A=$900, the percentageW interest rate per compounding period is r=10%=0.1, and the number of deposit to be made in the annuity is n=6
We plug the values into the formula to get:
[tex]N=\frac{900}{(1+0.1)^6} = \frac{900}{1.1^{6} } = 508.03[/tex]
Therefore the present value is $508.03
