SHOW THE STEP BY STEP SOLUTION using deferred annuity formula: A$=$ R$[1-(1+$i$)^-($n$+$h$)/$i$]-$ R$[1-(1+$i$)^-$h$/$i$]$

A mine will yield an annual operating profit of $$150,000$ starting with a return at the end of $5$ years,

and ending with profit at the end of $20$ years, when the mine becomes worthless. What is the value

of this mine to an investor to whom money is worth $5\%.$ Answer $-$$$1,337,438$