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WHAT IS A DEFERRED ANNUITY







Sagot :

Answer:

A deferred annuity is a contract with an insurance company that promises to pay the owner a regular income, or a lump sum, at some future date.

Deferred Annuity based on an ordinary annuity, is represented as for formula;

[tex]D.Annuity = POrdinary \frac{[1 - (1 + r)^{ - n} ]}{ [(1 + r)^{t}(r)] } [/tex]