Determine the unknown value for the following deferred annuity. The annuity is understood to be an ordinary annuity after the period of deferral.

Deferred Annuity

An insurance product that delays payments until the investor elects to receive them, often at retirement.

Ordinary Annuity

An investment that makes equal periodic payments for a fixed period of time.

Evaluate the forthcoming value of deferred and ordinary annuities, particularly those that grow with compounded interest.
Decode the mysterious values in the structure of annuity equations, with a spotlight on deferred annuities.

Verified Answer

Final Answer :

4 years

Learning Objectives

Evaluate the forthcoming value of deferred and ordinary annuities, particularly those that grow with compounded interest.
Decode the mysterious values in the structure of annuity equations, with a spotlight on deferred annuities.