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Monthly payments of P 1,000 for 9 years that will start 9 months from now. Semi-annual payments of P 12,700 for 5 years that will start 2 years from Activity 9: Give Me the Period of Deferral in each of the following Deferred Annulties. 1. Monthly payments of P 1,000 for 9 years that will start 9 months free 2. now. 3. Withdrawals of P 7,200 every 3 months for 9 years that will start at the of 2 years.. Annual payments of P 600 for 7 years that will start 7 years from now Payments of P 17,000 every 4 years for 12 years starting at the end of 12 4. 5. years.

Monthly payments of P 1,000 for 9 years that will start 9 months from now. Semi-annual payments of P 12,700 for 5 years that will start 2 years from Activity 9: Give Me the Period of Deferral in each of the following Deferred Annulties. 1. Monthly payments of P 1,000 for 9 years that will start 9 months free 2. now. 3. Withdrawals of P 7,200 every 3 months for 9 years that will start at the of 2 years.. Annual payments of P 600 for 7 years that will start 7 years from now Payments of P 17,000 every 4 years for 12 years starting at the end of 12 4. 5. years.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 17P
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Solve for activity no.9
Monthly payments of P 1,000 for 9 years that will start 9 months from now. Semi-annual payments of P 12,700 for 5 years that will start 2 years from Activity 9: Give Me the Perlod of Deferral in each ot following Deferred Annulties. 1. 2. now. 3. Withdrawals of P 7,200 every 3 months for 9 years that will start at the an of 2 years.. Annual payments of P 600 for 7 years that will start 7 years from now Payments of P 17,000 every 4 years for 12 years starting at the end of 12 4. 5. years. Additional Sample Problems 6. Melwin availed of a loan from a bank that gave him an option to pay P 20,000 monthly for 2 years. The first payment is due after 4 months. How much is the present value of the loan if the interest rate is 10% converted monthly? Given: R= 20,000 m=12 (12) = 0.10 k = 3 0.10 n = mt = 12(2) = 24 12 k +n = 3 +24 = 27 Find: P Solution. The present value of the deferred annuity can be solved as P =R1-(1+j)¬(k+n) -R1-(1+j)~k -(27) = R 1-(1+) 1-(1+)* R 0.10 12 0.10 12 = 20,000-(1+0.0083333333)-(27) 0.0083333333 - 20,000-(1+0.0083333333)-3 0.0083333333 = 20,000(24.0886750006) – 20,000(2.9506858642) = 481,773.500012 – 59,013.717285 = 422,759.78 Therefore, the present value of these payments is P 422,759.78. 7. Mariel purchased a smart television set through the credit cooperative of their company. The cooperative provides an option for a deferred payment. Mariel decided to pay after 2 months of purchase. Her monthly payment is computed as P 3,800 payable in 12 months. How much is the cash value of the television set if the interest rate is 12% convertible monthly? Given: R=3,800 m=12 (12) = 0.12 k = 1 n = 12 100 k +n= 1 + 12 = 13 0.12 j = 12 = 0.01 Find: Solution. The present value of the deferred annuity can be solyed an ww.
Transcribed Image Text:Monthly payments of P 1,000 for 9 years that will start 9 months from now. Semi-annual payments of P 12,700 for 5 years that will start 2 years from Activity 9: Give Me the Perlod of Deferral in each ot following Deferred Annulties. 1. 2. now. 3. Withdrawals of P 7,200 every 3 months for 9 years that will start at the an of 2 years.. Annual payments of P 600 for 7 years that will start 7 years from now Payments of P 17,000 every 4 years for 12 years starting at the end of 12 4. 5. years. Additional Sample Problems 6. Melwin availed of a loan from a bank that gave him an option to pay P 20,000 monthly for 2 years. The first payment is due after 4 months. How much is the present value of the loan if the interest rate is 10% converted monthly? Given: R= 20,000 m=12 (12) = 0.10 k = 3 0.10 n = mt = 12(2) = 24 12 k +n = 3 +24 = 27 Find: P Solution. The present value of the deferred annuity can be solved as P =R1-(1+j)¬(k+n) -R1-(1+j)~k -(27) = R 1-(1+) 1-(1+)* R 0.10 12 0.10 12 = 20,000-(1+0.0083333333)-(27) 0.0083333333 - 20,000-(1+0.0083333333)-3 0.0083333333 = 20,000(24.0886750006) – 20,000(2.9506858642) = 481,773.500012 – 59,013.717285 = 422,759.78 Therefore, the present value of these payments is P 422,759.78. 7. Mariel purchased a smart television set through the credit cooperative of their company. The cooperative provides an option for a deferred payment. Mariel decided to pay after 2 months of purchase. Her monthly payment is computed as P 3,800 payable in 12 months. How much is the cash value of the television set if the interest rate is 12% convertible monthly? Given: R=3,800 m=12 (12) = 0.12 k = 1 n = 12 100 k +n= 1 + 12 = 13 0.12 j = 12 = 0.01 Find: Solution. The present value of the deferred annuity can be solyed an ww.
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