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 income payments until the investor elects to receive them, which can be many years after the initial investment.

Ordinary Annuity

A series of equal payments made at regular intervals, with the interest compounded at the end of each period.

Calculate the future value of annuities, both deferred and ordinary, including those increasing at a compounded rate.
Determine the unknown values within annuity formulas, focusing on deferred annuities.

Verified Answer

Final Answer :

$9,294.26

Learning Objectives

Calculate the future value of annuities, both deferred and ordinary, including those increasing at a compounded rate.
Determine the unknown values within annuity formulas, focusing on deferred annuities.