An investor purchased a deferred annuity contract for $4608.07, a price calculated to provide a rate of

Question:

An investor purchased a deferred contract for $4608.07, a price calculated to provide a rate of return on investment of 9.75% compounded monthly. The semiannual payments of $400, once started, continue for a term of 15 years. How long is the period of deferral?
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...