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(2) The annuity symbol (la) i gives the present value of an annuity that has payments each m-th of a year, the payments in the

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(2) The annuity symbol (la) i gives the present value of an annuity that has payments each m-th of a year, the payments in the j-th year each being for an amount . That is to say, the payments are level each year and total j in the j -th year. So, the annual payments increase in arithmetic progression. Introduce a new annuity symbol (Gay) (r) giving the present value of an annuity that has level payments each year, the payments in the j-th year to- taling (1+r)j-1. Here the letter G stands for "geometric and was chosen to reflect the fact that the underlying annuity has total annual payments that increase geometrically. Explain how you can calculate (Ga) i (r). (2) The annuity symbol (la) i gives the present value of an annuity that has payments each m-th of a year, the payments in the j-th year each being for an amount . That is to say, the payments are level each year and total j in the j -th year. So, the annual payments increase in arithmetic progression. Introduce a new annuity symbol (Gay) (r) giving the present value of an annuity that has level payments each year, the payments in the j-th year to- taling (1+r)j-1. Here the letter G stands for "geometric and was chosen to reflect the fact that the underlying annuity has total annual payments that increase geometrically. Explain how you can calculate (Ga) i (r)

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