(1)

(2)

given effective rate of interest 4%

what is the accumulated value of an annuity paying 1 at the end of each year for 10 years, measured at the end of the 10 year period?

(3)

Effective rate of interest 3.0%

Expected rate of inflation 1.5%

what is the present value of 1,000 in todays dollars to be paid at the end of 10 years. In other words, 1,000 adjusted for inflation and discounted to today?

what is the real rate of return?

vnt Which of the following expressions is not the present value of an annuity-immediate of 1 for n years? a) am = = vt b) ani c) ani = n+11-1 1-21 i : Correct the expression d) an