1. A- Compute the present value of an annuity stream in which the first payment is due in 5 years, and annual payments occur forever. The first payment is $500 . Subsequent payments shrink at an annual rate of -4.0% per year. Use an effective annual rate (EAR) of 7.50%.

B- compute the future value (at a location that coincides with the last payment of a finite annuity stream). The first payment of $300 occurs immediately. The subsequent payments grow in magnitude at an annual rate of 4.0%. The last payment occurs 24 years from today. Use an effective annual rate (EAR) of 8.75%.

C-Rework the prior problem, but now compute the future value 34 years from today.