## Present Value of Deferred Annuity:

The present value of deferred annuity refers to the present value of a stream of payments that start occurring some certain period of time in the future which is also known as the deferred period. Different annuities have different deferred periods.

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Amount received each year (P) = \$2,000

Deferred period (t) = 3

Number of years amount received (n) = 16

Discount rate (r) = 12%

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How to Calculate the Present Value of an Annuity

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Chapter 8 / Lesson 3
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Learn how to find present value of annuity using the formula and see its derivation. Study its examples and see a difference between Ordinary Annuity and Annuity Due.