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.
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
Related questions
Question
Solve for activity no.9
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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