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8. Consider an annuity consisting of 3 years RM 2,000 per year. Assume a 4% interest rate. What is the present value of the annuity

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8. Consider an annuity consisting of 3 years RM 2,000 per year. Assume a 4% interest rate. What is the present value of the annuity if the first year occurs: [8 marks) a) Today (Calculate by using mathematical formula) b) One year from today (Calculate by using mathematical formula) 9. Suppose Calvin deposit RM 100,000 in an account today that pays 6% interest, compounded annually. How long does it take before the balance in the account is RM 429,190. [4 marks]

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