Example 3 What is the value today of a 10-year annuity that pays $300 a year (at year- end) if the annity's first cash flow starts at the end of year 6 and the interest rate is 15% for years 1 through 5 and 10% thereafter? Steps: 1. Get value of annuity at t= 5 (year end) 2. Bring value in step 1 to t=0