1. You are offered three annuities (these make equal payments over a specific period). Using an annual 4.2% discount rate, calculate each annuity's price: + # Life (yrs.) 10 Price ($) ? ? ? Payments ($/year) 195 200 (growing @1%/yr.) 49 (growing @1%/yr.) N 2 10 3 Forever A B D E Annuity 1 3 Payments Discount rate Growth rate - Price to be paid Cash Flows: 3 0 1 12 13 2 3 4 5 6 7 8 9 10 14 15 16 17 18 Robs UNOV 2021