a) A perpetuity makes payments half-yearly in arrears and has a 5-year deferred period. The first payment made is 10 and all subsequent payments increase at the compound rate of 20% but subject to an individual payment capping of 200. Calculate the present value of the perpetuity at an effective rate of interest of 6% p.a. for the first 10 years and 8% p.a. thereafter. 201 b) Use suitable annuity functions to evaluate (Ta)z assuming an annual time period applies together with an interest rate of 3% p.a. effective for the first 8 years and 5% p.a. thereafter. a) A perpetuity makes payments half-yearly in arrears and has a 5-year deferred period. The first payment made is 10 and all subsequent payments increase at the compound rate of 20% but subject to an individual payment capping of 200. Calculate the present value of the perpetuity at an effective rate of interest of 6% p.a. for the first 10 years and 8% p.a. thereafter. 201 b) Use suitable annuity functions to evaluate (Ta)z assuming an annual time period applies together with an interest rate of 3% p.a. effective for the first 8 years and 5% p.a. thereafter