You have just won the lottery and you can choose between the following payout options. The annual interest rate (EAR) is 8%. Ten payments of $100,000 received every three years; the first payment is made two years from today (i.e., payments are at t = 2, 5, 8, ..., 29). PV=?

R3 = 1.08^3 - 1 = 25.9712%

PV = 100.000 [1/0.259712 (1 - 1/1.259712^10)] 1.08 = 374,520

the underline 1.08: why times 1.08 ? where did it comes from?