annuity problem, help please

[hcc221]

consider a 5 payment annuity of $200 per year, with the first payment occurring at t=4. what is the present value (at t=0) of that annuity if r= 10%.
Answer: 569.61

please show me how you solve this problem

 

[stapel]

What formula did they give you to use for this exercise?

Thank you! :wink:

 

[Denis]

Once you got the formulas:
calculate present value of 5 payments of 200 (that'll be PV at t=3)
then calculate present value of that : use 1.10^3 ... understand?

 

[hcc221]

ah i got it. thank you very much to the both of you !