Deferred Annuity (please don’t use excel) 1. Find the present value of a deferred annuity of P1,250 a year for 7 years that is deferred 6 years, If money is worth 5% effective
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- Find the period of deferral (deferred annuity problem): A. Monthly payments of P1,000 for 9 years that will start 9 months from now B. Semi-annual payments of P8,500 for 8 years that will start 12 years from nowAn ordinary annuity paying P1,811 at the end of each year for 15 years, is to be converted to an annuity paying an amount at the beginning of each month for 15 years. Money is worth 10% compounded annually. Determine the following: a.) Present Value of the Payment. b.) Amount being paid at the beginning of each month for 15 years. Note: Don't use excel. Use or draw some cashflows.Directions: Determine the kind of annuity used in the following situations. Then, solve the problem. Show complete solutions. What equal payments at the beginning of each 2 months for 4 years will discharge a debt of P180,000 due now if the interest rate is 18.48% compounded every 2 months? a. Kind of annuity: b. Computation:
- DEFERRED ANNUITY (please don’t use excel) Find the semi-annual payment at the end of every six months, the first payment is due at the end of 7 years and the last at the end of 12 years for a loan of P500, 500, if money is worth 3%, compounded semi-annuallyIn a series of semiannual payments of P2,500 each the first payment is due at the end of 4 years and 6 months and the last payment at the end of 15 years and 6 months. What is the present value of the deferred annuity, if money is worth 5 ½% compounded semiannually? pLEASE SHOW SOLUTION use the formula A=R(1+R)^-k [(1-(1+r)^-n) / r) where ?, is the period payment, ?, is the interest rate, ?, is the total time period or number of times payment is made, and?, is the number of deferred periodsFind the period of deferral in each of the following deferred annuity problem. 1. A regular payment of P500 monthly for 3 years that will start 4 months from now. 2. A payment of P100,000 every quarter for 8 years starting at the end of 2 years. 3. A semi- annual payments of P1000 for 12 years that will start 3 years from now. 4. An annual installment of 25 years, first payment after 5 years. 5. A half- year instalment of 8 years, first payment of P2,000 after 18 months.
- A. Directions: Read the following annuity problem. Fill in the blanks in the statements that follow. A loan of P 30,000 is to be repaid monthly for 5 years that will start at the end of 4 years. If interest rate is 12% converted monthly, how much is the monthly payment? a) Type of annuity illustrated in the problem is a b) The total number of payments is c) The number of conversion periods in the period of deferred is d) The interest rate per period is annuity. e) The present value of the loan isShow Solution. Topic: General Annuity 1. How much money is accumulated if P3,900 is paid at the end of every month for 2 years at 6% compounded quarterly?Suppose you invest in an annuity that pays 6% interest, compounded annually. You contribute $4,500 each year for 10 years, what is the value of the annuity at the end of 10 years? Enter your answer rounded to the nearest hundred dollars. Omit the dollar sign and comma ($42,570.21 should be entered as 42600.)
- A company wants to have $20,000 at the beginning of each 6-month period for the next 4years. If an annuity is set up for this purpose, how much must be invested now if the annuity earns 6.31%, compounded semiannually? (a) Decide whether the problem relates to an ordinary annuity or an annuity due. ordinary annuityannuity due (b) Solve the problem. (Round your answer to the nearest cent.)Suppose you are going to receive $11,000 per year for 8 years. The appropriate interest rate is 11 percent per year. Requirement 1: What is the present value of the payments if they are in the form of an ordinary (a)annuity (cash flow starts at the end of the first compounding period)? (Click to select) (b) What is the present value if the payments are an annuity due (cash flow starts at the beginning of the first compounding period)? (Click to select) Requirement 2: (a)Suppose you plan to invest the payments for 8 years, what is the future value if the payments are an ordinary annuity? (Click to select) (b)Suppose you plan to invest the payments for 8 years, what is the future value if the payments are an annuity due? (Click to select)Find the present value of an annuity if $2,200.00 is paid to you at the end of every 2 months for 3 years, if interest is earned at a rate of 5%, compounded every 2 months.The present value is $. (Round to 2 decimal places.) answer is not $36,937.08