Answer the following questions. Include explanations where appropriately required.

An investor wishes to find the present value of a stream of property income payments. She proposes to make the following assumptions. The level of current payments is $20,000 per annum, paid quarterly in advance. Payments will remain fixed for 5-year periods. At the end of each 5-year period the payments will rise in line with total inflationary growth over the previous five years. Inflation is assumed to be constant at 3% per annum. The interest rate for the calculation is 12% per annum effective. Find the present value of the income stream assuming that the payments continue for 50 years. [6]Derive a formula for the accumulated value of an investment project which has cashflows at times 1,2. .... /0 (where (