1.) There are multiple factors that affect the value of an annuity which include the interest rate, payment amount, payment timing (beginning or end of period), and number of payments. Discuss how an increase in each will impact the both the present value and the future value of the annuity.

2..) A lending institution offers you a loan at a 5.99 percent APR. You will make monthly payments on the loan. Based on this information, answer the following:

a. What is meant by a 5.99 percent APR?

b. Given the loan must be repaid in monthly equal payments, what is the effective annual rate and what does it mean?