Homework Help is Here – Start Your Trial Now!
Business
Finance
d) Semi-annual payments of 60,000 for 3 years that will start 5 years from now. e) Payments of 3,000 every 2 years for 10 years starting at the end of 6 years.

d) Semi-annual payments of 60,000 for 3 years that will start 5 years from now. e) Payments of 3,000 every 2 years for 10 years starting at the end of 6 years.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
See similar textbooks
icon
Related questions
Question
NOTE: answer only D and E
B. Directlons: Solve the following problems completely. Find the period of deferral in each of the following deferred annuity. a) Monthly payments of 2,000 for 5 years that will start 7 months from now. a. Calculation of the period of deferral: Period of deferral (K)= Time period after payment starts(t)–1 = 7-1 = 6 So, the period of deferral is 6 months. b) Annual payments for 8,000 for 12 years that will start 5 years from now. b. Calculation of period of deferral: Period of deferral (K)= Time period after payment starts(t)–1 = 5-1 = 4 So, the period of deferral is 4 years. c) Quarterly payments of 5,000 for 8 years that will start two years from now. c. Calculation of period of deferral: Period of deferral (K)= Number of Quarters x Time period after payment starts(t)–1 = 4 x 2 - 1 = 7 So, the period of deferral is 7 quarters. d) Semi-annual payments of 60,000 for 3 years that will start 5 years from now. e) Payments of 3,000 every 2 years for 10 years starting at the end of 6 years.
Transcribed Image Text:B. Directlons: Solve the following problems completely. Find the period of deferral in each of the following deferred annuity. a) Monthly payments of 2,000 for 5 years that will start 7 months from now. a. Calculation of the period of deferral: Period of deferral (K)= Time period after payment starts(t)–1 = 7-1 = 6 So, the period of deferral is 6 months. b) Annual payments for 8,000 for 12 years that will start 5 years from now. b. Calculation of period of deferral: Period of deferral (K)= Time period after payment starts(t)–1 = 5-1 = 4 So, the period of deferral is 4 years. c) Quarterly payments of 5,000 for 8 years that will start two years from now. c. Calculation of period of deferral: Period of deferral (K)= Number of Quarters x Time period after payment starts(t)–1 = 4 x 2 - 1 = 7 So, the period of deferral is 7 quarters. d) Semi-annual payments of 60,000 for 3 years that will start 5 years from now. e) Payments of 3,000 every 2 years for 10 years starting at the end of 6 years.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Balance Of Payment
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS