Answer:
$409.02
Explanation:
In the first place, we need to determine the present value of the yearly annuity at the beginning of payout in 2 years:
PV=yearly payment*(1-(1+r)^-n/r
yearly payment=$150
r=annual rate of return on similar investments =9%
n=number of annual payments=4
PV=$150*(1-(1+9%)^-4/9%
PV=$150*(1-(1.09)^-4/9%
PV=$150*(1-0.708425211 )/9%=$485.96
Present value in 2 years=future value today=$485.96
PV=$485.96 /(1+9%)^2=$409.02
