Determine the term, expressed in years and months, for the following deferred annuity. The annuity is an ordinary annuity following the period of deferral.

Deferred Annuity

An annuity contract that delays payments until the investor elects to receive them, usually at retirement.

Ordinary Annuity

Periodic equal distributions made at the terminus of each phase throughout a determined period.

Compute the future worth of both deferred and regular annuities, incorporating those that grow at a compounded interest rate.
Identify the indeterminate values in formulas for annuities, concentrating on deferred annuities.

Verified Answer

Nancy AdadaMay 09, 2024

Final Answer :

13 years

Learning Objectives

Compute the future worth of both deferred and regular annuities, incorporating those that grow at a compounded interest rate.
Identify the indeterminate values in formulas for annuities, concentrating on deferred annuities.