Answer to Question #281532 in Financial Math for Julmalyn Gubalane

Question

monthly payment of 5,000 for 5 years that will start 7 months from now?

Answer 1

Find the period of deferral in

monthly payment of 5,000 for 5 years that will start 7 months from now?

Solution

Number of payments per year $=12$

Time in years that the payment is deferred$=\frac{7}{12}$

Period of deferral $=12×\frac{7}{12}-1=6\>months$