A deferred annuity is an annuity which delays its payouts. This means that the payouts do not start until after a certain duration. Notice that a deferred annuity is just a deposit at the start, followed by an annuity. Your task is to calculate the amount of money that is left in a deferred annuity.

Given the followings:
principal = 1000
gap = 2 (duration in months before the first payment)
payout = 100 (monthly)
duration = 2 (total number of payouts)
interest rate = 0.1 (monthly)

Note that duration specifies the number of payouts after the deferment, and not the total duration of the deferred annuity.

The answer key is 1121.0. 

"Duration" is the no.of months

Answer rating: 100% (QA)

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