Answer : Present value of a deferred annuity
Explanation: Present value concept relates to discounting back of the expected future cash flows to determine the actual payment that should be made today.
Deferred annuity refers to the contract made with the objective of long term savings.
In the given case, the savings are made for a long period by the Jamison corporation and wants to determine how much payment should be made today so that $10,000 could be obtained five years from now.
Hence from the above we can conclude that company should use present value of deferred annuity.
