600,000 100,000 400,000 200,000 2 4 6 8 An investment pays as shown in the cash flow diagram below. An investor would like to turn the above incomes into an annuity paying on the same dates. The interest rate is 5% nominal annual compounded monthly for the duration of the above project. (a) Calculate the present value of the above payments. (b) Calculate the equivalent 4 year interest rate. ) (c) Calculate the annuity value for each of the four annuity payments. 600,000 100,000 400,000 200,000 2 4 6 8 An investment pays as shown in the cash flow diagram below. An investor would like to turn the above incomes into an annuity paying on the same dates. The interest rate is 5% nominal annual compounded monthly for the duration of the above project. (a) Calculate the present value of the above payments. (b) Calculate the equivalent 4 year interest rate. ) (c) Calculate the annuity value for each of the four annuity payments