Joshua Desires to Purchase an Annuity on January 1, 2014

Multiple Choice

Joshua desires to purchase an annuity on January 1, 2014, that yields him five annual cash flows of $10,000 each, with the first cash flow to be received on January 1, 2017. The interest rate is 10% compounded annually. The cost present value) of the annuity on January 1, 2014, is

A) $31,328.81.
B) $34,461.70.
C) $37,907.87.
D) $48,684.19.