Answer
The present value of the investment is equal to $5,331.37
Work Step by Step
The formula for the present value of an annuity is:
$PV = PMT\frac{1 - (1+i)^{-n}}{i}$
Where:
$PMT = 100$
**Each year has 12 months, so m = 12.
$i = r/m = \frac{0.0475}{12}$
$n = mt = 12 * 5 = 60$
So:
$PV = (100)\frac{1- (1 + \frac{0.0475}{12})^{-60}}{\frac{0.0475}{12}} = 5,331.37$
