The present value of an annuity with the first payment starts 10 years from today can be calculated in two steps:

(1) using the PV of an ordinary annuity formula calculate the present value of the annuity at _____
(2) then discount back the answer found in part 1 to time zero by calculating the present value of this amount using single cash flow PV formula PV=FV/(1+i)^n

Select one:

a.

the end of year 10

 

 

b.

the end of year 9

 

 

c.

the start of year 9

 

 

d.

the end of year 8