Effective Interest Amortization of Bond Premium or Discount

11. Long Term Liabilities / Effective Interest Amortization of Bond Premium or Discount / Problem 7

Problem 7

What is the present value of a \$1,000 annuity received annually for 3 years at a discount rate of 5%?

\$3,000

\$2,723

\$2,850

\$2,500