Asked by Arisel Santini on May 16, 2024
Verified
How long is the period deferral if the first quarterly payment of a deferred annuity will be paid 3½ years from today?
Deferred Annuity
An insurance contract designed to generate regular payments starting at a future date, often used as a retirement investment.
Quarterly Payment
Regular payments made every three months on a loan or investment.
- Examine and contrast various forms of annuities and perpetuities, encompassing deferred annuities.
Verified Answer
NC
nicolò cerminaraMay 20, 2024
Final Answer :
As we defined it, the period deferral ends one payment interval before the first payment. In the present case, the period deferral is 3 years and 3 months.
Learning Objectives
- Examine and contrast various forms of annuities and perpetuities, encompassing deferred annuities.
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