Question: A deferred annuity will pay you $500 at the end of each year for 10 years, however, the first payment will not be made until

A deferred annuity will pay you $$ 500$ at the end of each year for $10$ years, however, the first payment will not be made until three years from today (payments will be made at the end of years $3$ through $12$ ). What amount will you have to deposit today to fund this deferred annuity? Use an $8 %$ discount rate and round your answer to the nearest $$ 100$ .

a. $$ 2, 200$ .

b. $$ 2.400$ .

c. $$ 2, 900$ .

d. $$ 3, 400$

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