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Definitions: A deferred annuity is like a regular annuity, expect the first payment is delayed by a certain number of periods.

Q1. Marc has $300,000 with which to purchase an ordinary annuity delivering monthly payments for 20 years after a 10year period of deferral. What monthly payment will he receive if the undistributed funds earn 5% compounded semiannually?

Formula:
Annuity formula: PV=PMT[(1−(1+i)^(−n))/i]

Q2. Natalie wishes to purchase an annuity for her retirement. Natalie is 30 years old today, and she wants the first payment to occur in 35 years when she turns 65. She would like the annuity
to make 20 equal annual installments of $20,000. How much will the annuity cost today, if i^((2))=10%?