During your regular group meeting (remember to meet and keep a log to submit at the end of the semester for extra credit), you encounter this set of cashflows: $100 payments, once a year for 3 years, with the first $100 payment exactly 4 years from today.

Your group mate Tony argues that this is a deferred ordinary annuity that begins 3 years from today.

Your other group mate Steve argues that this is a deferred annuity due that begins 4 years from today.

Who is correct?

Group of answer choices

Steve is correct and Tony is wrong.

Tony is correct and Steve is wrong.

Both Steve and Tony are correct.