Final answer:
To calculate the present value of an annuity, use the formula PV = PMT × ((1 - (1 + r)^-n) / r). Plugging in the values given in the question, the present value of the annuity is $68,058.07.
Step-by-step explanation:
To calculate the present value of an annuity, we can use the following formula: PV = PMT × ((1 - (1 + r)^-n) / r), where PV is the present value, PMT is the annual payment, r is the interest rate, and n is the number of years. In this case, the PMT is $10,000, the interest rate is 8%, and the number of years is 10. Plugging in these values, we get:
PV = $10,000 × ((1 - (1 + 0.08)^-10) / 0.08)
Solving this equation, the present value of the annuity is $68,058.07. Therefore, the correct answer is A. $68,058.07.