George S. answered 10/30/21
Goal oriented inspiring and pragmatic Math and Accounting tutor
The first step is to figure out what type of problem is this: It's an annuity for sure, and it's a delayed one, so use the deferred annuity formula. P * [1 – (1 + r)-n] / [(1 + r)t* r]
- P = Annuity Payment
- r = Rate of Interest
- n = Number of Periodic Payments
- t = Period of Delay
P here is 280, n is 18 and t is 6 and r is 6%. Solve for the above equation.