What would you be willing to pay today to receive $5,000 at the beginning of each year for the next 10 years if interest is earned at a rate of 8% compounded annually?

A) $34,656
B) $36,235
C) $33,551
D) $78,228

Compounded Annually

The process of calculating interest on both the initial principle and the accumulated interest of previous periods on a yearly basis.

Beginning of the Year

Refers to the start date of a calendar or fiscal year.

Pay Today

The requirement or action of making a payment at the current date, commonly used in the context of purchasing or settling debts.