Solve for the deffered annuity Solve the following problems.1.Car loanPlanning to give his son a car as a gift when he graduates from college 2 yearsfrom now, Adam decides to set aside a fund to enable him to pay the expectedmonthly amortization of P 21,500.00 every month for 3 years. If a bank offers topay an interest of 7.5% compounding monthly, how much should be set aside inorder to achieve his plan?2.Real EstateA house and lot package is available at P 27,000.00 monthly payable in 20years. The first payment is due in 2 years exactly the time when the house unitwill be turned in to the buyers. How much is the cash value if the interest rate is7.5% convertible monthly?Sketch a time diagram or timeline for each problem.Rubrics for rating the output:Score DescriptorsThe situation is correctly modeled with a deferred annuity, appropriatemathematical concepts are fully used in the solution and the correct20final answer is obtained.16

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1. Car loan Planning to give his son a car as a gift when he graduates from college 2 years from now, Adam decides to set aside a fund to enable him to pay the expected monthly amortization of P 21,500.00 every month for 3 years. If a bank offers to pay an interest of 7.5% compounding monthly, how much should be set aside in order to achieve his plan?

1. Car loan Planning to give his son a car as a gift when he graduates from college 2 years from now, Adam decides to set aside a fund to enable him to pay the expected monthly amortization of P 21,500.00 every month for 3 years. If a bank offers to pay an interest of 7.5% compounding monthly, how much should be set aside in order to achieve his plan?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter14: Planning For Retirement

Section: Chapter Questions

Problem 8FPE

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1. Car loan Planning to give his son a car as a gift when he graduated from college 2 years from now, Adam decided to set aside a fund to enable him to pay the expected monthly amortization of P 21,500.00 every month for 3 years. If a bank offers to pay an interest of 7.5% compounding monthly, how much should be set aside in order to achieve his plan? Sketch a time diagram or timeline for this problem
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