2. An 8-year annuity due has a present value of $1,000. If the interest rate is 5 percent, the amount of each annuity payment is closest to which of the following? A. $154.73 B. $147.36 C. $109.39 D. $104.72 E. $ 99.74 0 1 2 3 4 5 6 Time line |-------- ----|-----------------------|--------| $10 $ 10 $ 10 $10 $10 Cash flows 1 A B The present value of the 5-period annuity shown above as of Point A is the present value of a 5. period , whereas the future value of the same annuity as of Point B is the future value of a 5-period A. ordinary annuity; ordinary annuity. B. ordinary annuity; annuity due. C. annuity due; annuity due. D. annuity due; ordinary annuity. 5. Pension fund and insurance obligation is an example of? (a) Annuities (b) Perpetuity (c) Console (d) Securities