Present Value of an Annuity: Transit Insurance Company Has Made

Present value of an annuity: Transit Insurance Company has made an investment in another company that will guarantee it a cash flow of $37,250 each year for the next five years. If the company uses a discount rate of 15 per cent on its investments, what is the present value of this investment? (Round to the nearest dollar.)

A) $101,766
B) $124,868
C) $251,154
D) $186,250