1.A perpetuity-due has monthly payments in this pattern:

Q, 2Q, 3Q, Q, 2Q, 3Q, Q, 2Q, 3Q, . . .

The present value of the perpetuity is $700,000 and the effective annual discount rate is 6%. Find Q. The answer should be ($1,803.15)

2.A 30 year annuity-immediate has first payment $1200 and each subsequent payment increases by 0.5%. The payments are monthly and the annual effective rate is 8%. Find the accumulated value of the annuity at the end of 30 years. The answer should be ($3,380,750.50)

3.A 20 year annuity has annual payments which increase by $500 each year. The first payment is $10,500 on Jan. 1, 2018. The annual effective interest is 1%. What is the value of the annuity on Oct. 1, 2017? The answer should be ($274,250.53)

4.A loan is repaid with level installments payable at the end of each half-year for 3(1/2) years, at a nominal rate of interest of 8% convertible semiannually. After the 4th payment, the outstanding loan balance is $5000. Find the amount of the loan. The answer should be ($10,814.16)