[btclair]

Find the present value of the following ordinary annuities"
$200 per year for finve years at 5%

[reinsuranc]

An Ordinary Annuity is a series of payments made at the end of each period.

The present value at 5% of a 200 payment made at the end of year one is 200/(1.05) = 190.48

The present value at 5% of a 200 payment made at the end of year two is 200/(1.05^2) = 181.41
(The "^" means raise to the power; 1.05^2 = 1.05*1.05.)

For all five payments, the present value is:
=200/(1.05) + 200/(1.05^2) + 200/(1.05^3) + 200/(1.05^4) + 200/(1.05^5)

= 865.90