Question: A deferred annuity will pay you exist500 at the end of each year for 10 years, however the first payment will not be made until
A deferred annuity will pay you exist500 at the end of each year for 10 years, however the first payment will not be made until two years from today (payments will be made at the end of year 2 through 11). 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 exist100. a. exist2, 200 b. exist2, 400 c. exist2, 900 d. exist3, 100
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