Response to the following problems:
1. Explain how to determine the converted table factor for any deferred annuity by using the present value of an ordinary annuity table.
2. Samuel Ames owes $20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in three annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place in a brief formula, but do not solve.
If possible, please give examples to better understand your response.