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
B. Solve the following problems completely.
1. A loan is to be repaid quarterly for 5 years that will start at the end of 2 years. If
interest rate is 6% converted quarterly, how much is the loan if the quarterly
payment is P10,000?
2. A cash loan is to be repaid by paying P13,500 quarterly for 3 years starting at the
end of 4 years. If interest rate is 12% convertible quarterly, how much is the cash
3. A car is to be purchased in monthly payments of P19,500 for 5 years starting at
the end of 3 months. How much is the cash value of the car if the interest rate
used is 10% converted monthly?