Find the present value of 10year ordinary annuity of $5,000 per year plus extra $2,000 at the end of 10th year. Assume 5% interest rate. Assume annual compounding. Include up to 2 decimals.
A. 
$38,896.5 

B. 
$33,547.9 

C. 
$55,578.6 

D. 
$35,547.8 

E. 
$39,836.5 
Year  Cash flow  PVIF@5%  Present value 
0  $   1.00000  $0.0 
1  $ 5,000  0.95238  $4,761.9 
2  $ 5,000  0.90703  $4,535.1 
3  $ 5,000  0.86384  $4,319.2 
4  $ 5,000  0.82270  $4,113.5 
5  $ 5,000  0.78353  $3,917.6 
6  $ 5,000  0.74622  $3,731.1 
7  $ 5,000  0.71068  $3,553.4 
8  $ 5,000  0.67684  $3,384.2 
9  $ 5,000  0.64461  $3,223.0 
10  $ 7,000  0.61391  $4,297.4 
Present value  $39,836.5 
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