Baxter Desires to Purchase an Annuity on January 1,2014,that Yields

Multiple Choice

Baxter 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) $31,329
B) $34,462
C) $37,908
D) $48,684