Frustration with getting simple question wrong (perpetuity)

I do understand the solution and i solved it in the same way as given in the answer

but isnt the question a bit ambigious about if the payments are made at the end of the year or at the beggining of the year?
 if payments begin at t=4 it could be the end of the year payment and we recieve the cash at 31st dec of 4rth year so techincally 4 periods have elapsed??

$250 starting on year 4. When you calculate PV of that payment stream it will be for year 3.

if you do n=999 i= 6% (annual) p= $250, then compute the PV you will get $4,166.67. However, you need the PV today and not at T= 4 (this is beginning of year 4 or end of year 3). So, change N = 3, FV to $4,166.67, p = 0 and compute PV to get $3,498.42. You’ll soon realize that the CFA will make you take the PV of all future after tax payments; just always have PV of anything on your mind. 🙂

The question wording is a little clunky. Don’t expect them to say t=4 on the actual exam.

For a standard perpetuity calculation, you are at t = 0 now. The first payment comes in a year later (t = 1). If we push back the payment 3 years (to t = 4), we’ll need to discount 3 years as well.