Question: Exercises II: Answer as indicated. Write your answers in a separate sheet of paper. 1. Find the present value of a 2-year deferred annuity at

Exercises II: Answer as indicated. Write your answers in a separate sheet of paper. 1. Find the present value of a 2-year deferred annuity at 4% interest compounded quarterly with payments of P1,000 made every quarter for 3 years. 2. Find the present value of a 3-year deferred annuity with regular payments of P10,000 compounded annually at an interest rate of 3%. 233 TOA VIVA PRESENT VALUE OF A DEFERRED ANNUITY The present value of a K-year deferred annuity at interest rate i compounded m times ayear with regular payments R for t years is given by: P = (1+5)*R m Where: P - Present value of the deferred annuity R-regular payment m-compounding periods i-interest rate k - period of deferral t = time The only difference of the formula above to the formula of the present value of an ordinary annuity is the factor (1+) =**

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