Finance Assignment | Professional Writing
June 9th, 2020
(2 points) Consider a perpetuity-immediate with level annual payments of 50 at times 1, 2, …, 12. After time 12, payments increase by 3% every year for ever.
Find the PV of this perpetuity at time 0 given an annual effective rate of interest i = 5%. PV = 1 (2 points) Consider an annuity-due with 12 annual payments. The first payment is 4000 at time 0 and each subsequent payment decreases by 7%. Find the AV of this annuity 4 years after the last payment at an annual effective rate of interest i = 8%. AV =
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