Question 1.
Solution: Present value of deferred annuity = Pmt.×[1-(1+i)-n] / [(1+i)t ×i ]
Where, i = Interest rate
n = no. of payments and t = period of deferrals
So, present value of deferred annuity = $25,000×[1-(1+0.0025/2)-18] / [(1+0.0025/2)12× (0.0025/2) ]
= $438,083.87 (Rounded off to the 2 decimal places)
Question 2.
Solution:
present value of deferred annuity = $5,000×[1-(1+0.05/12)-60] / [(1+0.05/12)20× (0.05/12) ]
= $243,811.22 (Rounded off to the 2 decimal places)
Question 3.
Solution :
present value of deferred annuity = $2,000×[1-(1+0.045/4)-16] / [(1+0.045/4)4× (0.045/4) ]
= $27,860.93 (Rounded off to the 2 decimal places)
1.What is the present value of the deferred annuity if the regular payment is P25,000.00 every...
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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...
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1. What is the future value of the annuity if one needs to pay annually, the present value is P68,000.00 with an interest rate of 5% compounded quarterly, and the total payment of 11? 2.What is the regular payment of the annuity if one needs to pay quarterly, the present value is P125,000.00 with an interest rate of 6% compounded monthly, and the total payment of 25? 3.What is the regular payment of the annuity if one needs to pay...
2.What is the regular payment of the annuity if one needs to pay quarterly, the present value is P125,000.00 with an interest rate of 6% compounded monthly, and the total payment of 25?
9.What is the present value of the annuity if the quarterly payment is P500.00 with an interest rate of 2% compounded monthly and the total payments is 25? 10.What is the present value of the annuity if the quarterly payment is P500.00 with an interest rate of 2% compounded monthly and the total payments is 25?
3.What is the regular payment of the annuity if one needs to pay annually, the present value is P68,000.00 with an interest rate of 5% compounded quarterly, and the total payment of 11?
GENERAL ANNUITY Instruction: Solve the given situations. Show your solutions (5 points each). 1. Soledad decides to save P2,700 at the end of every 6 months, which is the amount paid into her retirement plan by the company where she works. If she chooses an investment fund that guarantees 8% per year compounded quarterly, how much will she have in 10 years? 2. What is the present value of an annuity of P7,300 per semi-annual period for 7 years at...
9.What is the present value of the annuity if the quarterly payment is P500.00 with an interest rate of 2% compounded monthly and the total payments is 25?