First, we calculate the present value in year 5 of the annuity and then once again calculate the present value of this result to get the value today
Present value an annuity = P*(1-(1+r)^-n)/r
where P = 3200, r = 0.10 and n = 15 payments (from year 6 to year 20)
Present value of the annuity in year 5 = 3200*(1-(1+0.10)^-15/)0.10
Present value of the annuity in year 5 = 3200*(1-1.10^-15)/0.10
Present value of the annuity in year 5 = 24,339.45
Now with 24,339.45 as the FV , we calculate the present value today as
PV today = FV/(1+r)^n = 24339.45/1.10^5
PV today =15,112.89
Value today =$15,112.89
