(5) The following payments are to be received and Using an annual effective interest rate of 2% (a) with payments P 50,000 at the end of the first year, P 52,500 at the end of the second year, P 55,000 at the end of the third year and so on, until the final payment is P 75,000. Determine the present value of these payments at time 0 and accumulated value at the time of the last payment using Increasing Annuity formulas instead. You may verify results only using the general formula (b) Do the same as in (b) whenever the payments are P50,000 at the end of the first year, P 47,500 at the end of the second year, P 45,000 at the end of the third year and so on, until the final payment is P2,500. 3 (c) What if the payments in (a) increase by 1 -% for 10 years? (d) What if the payments in (a) and (c) are perpetual payments, how much is the initial worth of each? 5