146 The theory of interest EXERCISES 4.2 Differing pa yment and interest conversion periods 1. Find the accumulated value 18 years after the first payment is made of an annuity on which there are 8 payments of $2000 each made at two-year intervals. The nominal rate ofinterest convertible semiannually is 7%. Answer to the nearest dollar. Find the present value of a ten-year annuity which pays $400 at the beginning of each quarter for the first 5 years, increasing to $600 per quarter thereafter. 2 effective rate of interest is 12%. Answer to the nearest dollar. The annual