1. Aperpetuity,startingJanuary1,2015pays1everyJanuary1ineverycommonyear and2onJanuary1ofeveryleapyear.Theinterestrateoneverycommonyearisi andthatofeveryleapyearisj.FindthevalueoftheperpetuityonJanuary12010.
2. For 3000, Nick purchases an perpetuity-immediate paying 100 at the end of each 6 months period. For the same amount and for the same effective annual rate Paul purchase an annuity-immediate with 80 quarterly payments that begin at amount P and decreases by 1.1 each quarter. Find P.