A deferred indexed annuity is purchased for $P. This annuity provides for thirty annual payments with the first payment to be made in 5 years time. The first payment is $12,000 and each payment thereafter increases by 2%. Assume j = 4%. Calculate $P. When answering this question, be sure to demonstrate your understanding of the equation of value (EOV) process and steps.

Please write down the formula used for answering the question. Please don't use Excel answering the question