3. (a) Calculate the present value at time t 0 of 25 annual payments. The first 15 payments are each 1,200 and the last 10 payments are 1,500. The first payment is due at time t = 1. You should assume an effective interest rate of 6.25% p.a. [4 marks] (b) Without doing any further calculations, state how your answer to (a) would change if you used a higher interest rate. [1 mark] The timing of the payments over the first 15 years is to change to quarterly in arrear, instead of annually. The present value of all the payments remains the same as calculated in part (a) above. (c) Calculate the revised annual payment made in each of the first 15 years. [5 marks [Total: 10 marks