of P1,000 for 9 years that will start 9 months from now 1. Monthly payments Monthly payments of P200 for 6 years that will start at the end years 2. 3. of 10 that will start 2 years Semi-annual payments of P12,700 for 5 years of P8,500 for 8 years that will start 12 years from from now now

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 1Q
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P= R + j)
-(k+n)
1-(1+j)*
UI The deferred annuity 'can be solved as
-R
j
=12000
1-(1+0.20)*
12000
1-(1+0.20)1
0.20
= 21,064.81
Therefore, the present value of these payments is P21,064.81.
0.20
Lesson 30 Supplementary Exercises
A. Find the period of deferral in each of the following deferred annuity problem.
1. Monthly payments of P1,000 for 9 years that will start 9 months from now
2. Monthly payments of P200 for 6 years that will start at the end of 10 years
3. Semi-annual payments of P12,700 for 5 years that will start 2 years from now
4. Semi-annual payments of P8,500 for 8 years that will start 12 years from now
5. Withdrawals of P7,200 every 3 months for 9 years that will start at the end of 2
years
6. Payments of P13,000 every 3 months for 18 years that will start four years from
now
204
Transcribed Image Text:P= R + j) -(k+n) 1-(1+j)* UI The deferred annuity 'can be solved as -R j =12000 1-(1+0.20)* 12000 1-(1+0.20)1 0.20 = 21,064.81 Therefore, the present value of these payments is P21,064.81. 0.20 Lesson 30 Supplementary Exercises A. Find the period of deferral in each of the following deferred annuity problem. 1. Monthly payments of P1,000 for 9 years that will start 9 months from now 2. Monthly payments of P200 for 6 years that will start at the end of 10 years 3. Semi-annual payments of P12,700 for 5 years that will start 2 years from now 4. Semi-annual payments of P8,500 for 8 years that will start 12 years from now 5. Withdrawals of P7,200 every 3 months for 9 years that will start at the end of 2 years 6. Payments of P13,000 every 3 months for 18 years that will start four years from now 204
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