Question

Payment of 400.00 every 5 months for 3 years that start at the end of 5 years. What is the period of deferral?

Answer 1

period of deferral:

$k=nt-1$

where n is number of times compounded,

t is time

we have:

$nt=5\cdot12/5=12$

then:

$k=12-1=11$ periods $=11\cdot 5=55$ month