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A perpetuity will pay $1,000 per year, starting 5 years after the perpetuity is purchased. What is the present value of this perpetuity on the

A perpetuity will pay $1,000 per year, starting 5 years after the perpetuity is purchased. What is the present value of this perpetuity on the date that it is purchased, given that the interest rate is 4%?

A. $1,410

B. $20,582

C. $21,370

D. $34,604

I know the answer is B, but I'm having trouble on figuring out why.

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