Deferred annuity
Del Monty will receive the following payments at the end of the next three years: $22,000, $25,000, and $27,000. Then from the end of the 4th year through the end of the 10th year, he will receive an annuity of $28,000 per year.
At a discount rate of 10 percent, what is the present value of all three future benefits? Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods