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 annuity contract that delays payments of income, installments, or a lump sum until the investor elects to receive them.

Ordinary annuity

Regular payments of the same amount made at set intervals, during which interest is calculated and added at the end of each period.

Gauge the financial worth of various annuities and perpetuities, including ordinary annuities, annuities due, deferred annuities, and perpetuities, considering different compounding scenarios.

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Final Answer :

2 years and 6 months

Learning Objectives

Gauge the financial worth of various annuities and perpetuities, including ordinary annuities, annuities due, deferred annuities, and perpetuities, considering different compounding scenarios.