Question

If money is worth 6.15% compounded annually, compute the present values of the following:

a. An ordinary annuity of P1,230 annually for 10 years.

b. A deferred annuity of P1,230 annually starting at the end of third year and continue the payment to the end of fourth year.

c. Perpetuity of P1,230 payable annually. ​

Answer 1

Answer:

b A deferred annuity of P1,230 annually starting at the end of third year and continue the payment to the end of fourth year.