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
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
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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
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
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