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(4 points) Suppose that the effective annual interest rate is 5.5%. a) Find the present value of the annuity-immediate consisting of 21 annual payments forming
(4 points) Suppose that the effective annual interest rate is 5.5%. a) Find the present value of the annuity-immediate consisting of 21 annual payments forming an arithmetic progression: $105, $100,..., $5. Answer = $ b) Find the present value of the annuity-immediate consisting of 21 annual payments forming an arithmetic progression: $705, $700,..., $605. Answer = $ (4 points) Suppose that the effective annual interest rate is 6%. Find the present value and the accumulated value of the annuity-immediate consisting of the following 37 annual payments: $500, $600,..., $2200, $2300, $2200,..., $600, $500. a) Present Value = $ b) Accumulated Value = $
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