Final answer:
The amount of the annuity is $7726.24.
Step-by-step explanation:
To find the amount of an annuity that consists of 10 annual payments of $1000 each into an account that pays 6% interest per year, we can use the formula for the present value of an annuity:
Present Value = Payment Amount x (1 - (1 + Interest Rate)^(-Number of Payments)) / Interest Rate
Substituting the given values, we get:
Present Value = $1000 x (1 - (1 + 0.06)^(-10)) / 0.06
Simplifying the expression, we find that the present value of the annuity is approximately $7726.24.