(Present value of an annuity) Determine the present value of an ordinary annuity of $2,500 per year for 19 years, assuming it earns 9 percent. Assume that the first cash flow from the annuity comes at the end of year 5 and the final payment at the end of year 23. That is, no payments are made on the annuity at the end of years 1 through 4. Instead, annual payments are made at the end of years 5 through 23.

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Part 1

The present value of the annuity at the end of year 4 is