What is the present worth of a cash flow that gives you 5 in

What is the present worth of a cash flow that gives you $5 in time period zero and $5 every period until time period 20?

$5(P/A,i, 21)/(1+i)

$5+$5(P/A,i, 20)

$5(P/A,i, 21)

105/(1+i)^20

Solution

b) 5 + 5/(i+i) + 5/[(i+i)^2] +...+ 5/[(i+i)^20]

= $5+$5(P/A,i, 20)