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To calculate the present value of the annuity, we can use the formula for the present value of an ordinary annuity:
PV = PMT * [1 - (1 + r)^(-n)] / r
Where:
PV = Present Value
PMT = Monthly annuity payment = $150
r = Monthly interest rate = 14% / 12 = 1.1666% or 0.11666
n = Number of payments = 5 years * 12 months = 60
Plugging the values into the formula:
PV = $150 * [1 - (1 + 0.11666)^(-60)] / 0.11666
PV = $150 * [1 - (1.11666)^(-60)] / 0.11666
PV = $150 * [1 - 0.23098] / 0.11666
PV = $150 * 0.76902 / 0.11666
PV = $113.45 / 0.11666
PV = $9717.46
Therefore, the present value of the annuity is approximately $9,717.46.