1. Find Present value PV = ?
Regular Deposit
(PMT Amount) C = 1000, Interest Rate i = 10%, Time n = 5 Year,
Deposit Frequency = at the end (Ordinary Annuity) of every Year (1/year)
for Present value of Annuity method

Solution:
`C=1000` (Cash flow per year)

`i=10%=0.1` per year (Interest rate)

`n=5` years (Number of periods)

Now, Present value (Ordinary Annuity) formula is
`PV_("Ordinary Annuity")=C*[(1-(1+i)^(-n))/(i)]`

`=1000*[(1-(1+0.1)^-5)/(0.1)]`

`=1000*[(1-(1.1)^-5)/(0.1)]`

`=1000*[(1-0.6209)/(0.1)]`

`=1000*3.79`

`=3790.79`

Calculating each payment present value individually and then adding them all

`1^(st)` year 1000's present value `=1000/(1.1)^1`	`=909.09`
`2^(nd)` year 1000's present value `=1000/(1.1)^2`	`=826.45`
`3^(rd)` year 1000's present value `=1000/(1.1)^3`	`=751.31`
`4^(th)` year 1000's present value `=1000/(1.1)^4`	`=683.01`
`5^(th)` year 1000's present value `=1000/(1.1)^5`	`=620.92`
Total present value	`=3790.79`