2. Find the present value of a deferred annuity of3,000 per year if the first payment begins at the end of 5 years and continue for 12 years. The compound interest rate is 5% per annum.
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Answer:
Correct option is B)
Rs. 5365.35
Step-by-step explanation:
Annual payment A=Rs. 500
n=7
i=14%=0.14
A(7,0.14)=500[0.14(1+1.014)7−1]
=Rs. 5365.35
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