In 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 periods

In 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 periods

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EB: You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how...

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