Final answer:
The present value of a $900 annuity payment over five years with an 8% interest rate is approximately $3477.33.
Step-by-step explanation:
The present value of a $900 annuity payment over five years with an 8% interest rate can be calculated using the formula for the present value of an annuity. This formula is:
Present Value = Payment / (1 + Interest Rate)^n
Where Payment is the annuity payment, Interest Rate is expressed as a decimal, and n is the number of payment periods.
Using this formula, the present value of the $900 annuity payment over five years at an 8% interest rate is approximately $3477.33.