Deferred Annuity: 1. Find the present value of a deferred annuity of P760 every six months for 5 years that is deferred 3 years, if money is worth 4% compounded quarterly. 2. Find the present value of a deferred ammity of P760 every six months for 5 years, if the first payment is made in 2 years, and money is worth 5% compounded semiannually. 3. In a series of quarterly payments of P960 each, the first payment is due at the end of 5 years and the last at the end of 10 years and 9 months. If money is worth 6% compounded quarterly, find the present value of the deferred annuity.

Q: The following terms of payment for an annuity are as follows: Periodic payment = P20,000 Payment…

A: Periodic payment = 20,000 Interest Rate = 18%/12 = 1.5% per month N = 15 years i.e. 180 months…

Q: An annuity due which pays 100 per month for 12 years has a present value of 7,908.   Calculate the…

A: We need to use RATE function in excel to calculate annual effective interest rate.The formula is:…

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A: Solution- Step (1) Given that Amount of first payment =100 Numbers of year =10 Number of semi-annual…

Q: Find the amount (future value) of the ordinary annuity. (Round your answer to the nearest cent.)…

A: Future value of the ordinary annuity (FV). FV= [P*(1+r/n)^nt -1] / (r/n)

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A: An annuity is a series of cash flows wherein an equal amount is paid every period. An ordinary…

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A: Present value of annuity = Payment,*1/r[1-(1/(1+r)^n]] Where r= 7.3%/4 = 1.825% n= 4 quarters*20…

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A: STEP 1 When assuming a specific rate of return, or discount rate, the future value of an annuity is…

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A: An ordinary annuity is a series of equal cash flows or payments received or paid at the end of each…

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A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: What is the period of deferral in the deferred annuity?

A: Deferred annuity refers to the annuity payments beginning in the future agreed date i.e. after an…

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A: Annuity refers to a sum of fixed and periodic cash flows. To compute the present value of an annuity…

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A: Ordinary Annuity: It represents the cash flows/payments of the annuity occurring at the end of the…

Q: Directions: Solve the following problems completely. Find the period of deferral in each of the…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: (Compound annuity​) What is the accumulated sum of each of the following streams of​ payments? a.…

A: Accumulated sum will be equal to the sum of compounded values of each payment. This concept is known…

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A: The annuity refers to the series of regular payments that last for a specific period of time. The…

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A: Present value (PV) is a financial concept that represents the current value of a sum of money or a…

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A: Ordinary annuity is a type of annuity where the payments will be made at the end of the year.

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A:

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A: The present value is the present worth of the amount that will be paid or received at future.

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A: we will be using excel function =PV and =FV to calculate present value and future value of annuity…

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A: An annuity refers to a series of periodic payments made in exchange for a lump sum payment. It is…

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A: The present value is the value of the sum received at time 0. It is the current value of the sum…

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A: First payment takes place in the beginning of 6th year. The payments are made quarterly.

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A: Present value compares the value of money received or paid at different times in time and assists…

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A: Time Value of Money states that a dollar earned today is more valuable than any time in the future,…

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A: PV of annuity with continuous compounding is to be determined. Here, PMT1 = $200 Number of periods…

Q: Find the future value of the following ordinary annuity. Payments are made and interest is…

A: Future value of an ordinary annuity The value of the sum of future cash flows is called the future…

Q: Find the future value of an ordinary annuity it payments are made in the amount R and interest is…

A: Future Value of Ordinary AnnuityThe future value of an ordinary annuity represents the total value…

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A: Perpetuity is payment forever and continuous payments and immediate annuity start with payment…

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A: Step 1:It is given that, A thirty-year annuity has end of month payment and the first-year payment…

Q: t accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

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A: Present Value(PV) refers to value of sum at current date which would be received or paid in future…

Q: Show Solution. Topic: General Annuity 3. Find the periodic payment of an annuity payable…

A: Present value of an annuity: lump sum amount that equals the value now of a set of equal periodic…

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A: The Future Value of an Ordinary Annuity refers to the concept which gives out the compounded or…

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A: The cash flows that are started immediately after the investment and go on for an infinite time…