1- Consider a perpetuity-due with annual effective interest rate i that has a payment every k years. The size of the jth payment is $j. Express the present value of this annuity using annuity notation.

2- Consider an annuity that pays out at the end of each month for ten years. If the first payment is $1200 and each payment is $5 greater than the previous one Calculate the present value of the annuity if interest is converted semi-annually at a nominal rate of 3%.