Question

4.What is the present value of the deferred annuity if the regular payment is P15,000.00 every month, the interest rate is 8% compounded monthly, with an actual payments of 24, and the period of deferral is 12? 5.What is the present value of the deferred annuity if the regular payment is P5,000.00 every year, the interest rate is 5% compounded annually, with an actual payments of 6, and the period of deferral is 12? 6.What is the present value of the deferred annuity if the regular payment is P5,000.00 every month, the interest rate is 1.5% compounded monthly, with an actual payments of 12, and the period of deferral is 2? 7.What is the present value of the deferred annuity if the regular payment is P500.00 every month, the interest rate is 2% compounded monthly, with an actual payments of 60, and the period of deferral is 20?

Answer 1

4. Given,

Regular payment = P15000

Interest rate = 8%

Monthly interest rate = 8%/12 = 0.6667% or 0.006667

No. of actual payments = 24

Period of deferral = 12

Solution :-

Present Valune ot defteed Annuity 7 11 here Aregular paymtnts ate of interest No. ot actual Poyments Peniod of Defferal No ot Deffenedl Annuty Present Value (1+0.006667) O, 00666701 +0.006667) 15000 1.006667) 0.co6667 (1.O06661)

I5000 1. 17289725 O. 006661(1.08300381) O. 1728972S 15000 XL1n2892 O.0072303864 2311. 1559 644 O.0072203864 P 306231.90 Poesent Valne of the Thus Eter deferred anhuity ds P 306232.90 1 A