<PRE><B>Question 1043216</B>
We will use the formula for Present Value of an Annuity:
P[1-{1+r)^-n}/r]
where:
P is the periodic payment = 100
r is the rate per period = 8%
-n is the number of periods = -10 (negative, your value decreases over time, so when you get the last 100 at year 10 there is no more left)
:
100[1-{1+0.08)^-10}/0.08] = 671 is your present value.
:
John</PRE>