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

A financial instrument that defers payments to the investor until a predetermined time.

Ordinary annuity

A series of equal payments made at the end of consecutive periods over a specified length of time.

Ascertain the fiscal worth of several types of annuities and perpetuities, such as ordinary annuities, annuities due, deferred annuities, and perpetuities, given various compounding frequencies.

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Final Answer :

3 years

Learning Objectives

Ascertain the fiscal worth of several types of annuities and perpetuities, such as ordinary annuities, annuities due, deferred annuities, and perpetuities, given various compounding frequencies.