1) An investor is looking for the present value of a stream of property income payments. She suggests assuming the things listed below. Current payments are 20,000 dollars annually, paid in advance every quarter. The payments will be fixed for five years. after every five years The payments will increase in line with the overall rate of inflation over the 5-year period. It is assumed that annual inflation will remain at 3 percent. The effective interest rate used in the computation is 12 percent annually. Assuming that the payments will continue for 50 years, calculate the income stream's present value.

2)

A predetermined stream of future payments' current value or price is known as the present value of an annuity. This can be discovered by discounting each financial flow at a specific rate.

Considering a 12 percent annual interest rate that is converted to a monthly payment.

1. Determine the total present value of an instant annuity with monthly arrear payments of 1,000 dollars for the first six years and 400 dollars for the following four, with a lump sum payment of 2,000 dollars after ten years.
2. Determine the amount of the level annuity with the same present value as in (i) above, which is payable continuously for ten years.
3. For the payments in (i) and (ii) above, determine the aggregate values of the first seven years' payments at the end of the seventh year.