Thomas is considering the purchase of two different annuities.The first begins in three years and pays $1,000 per year for five years.The second begins in 10 years and pays $2,500 per year for seven years.Thomas is currently very risk-averse as he has a young family and little income, and thus his current opportunity cost of capital is 4%.In nine years, Thomas expects to be more financially secure and his cost of capital will increase to 9% from then on.If each annuity costs $5,000 today, which annuity (or annuities), if any, should Thomas purchase?How much value will Thomas realize from his purchase(s), if he makes any purchases?

Answer:He should purchase the second annuity; he will realize $3,840.21 in value

I am completely lost on how to get this answer