Answer:
$3,306.20
Explanation:
The present value of any payments can be calculated using the following formula:
Present value=R((1-(1+i)^-n)/i)
R= annuity payment =$850 in this case
i=interest rate=9%
n=number of payments=5
Present value=$850((1-(1+9%)^-5)/9%)
=$3,306.20
