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Assuming an interest rate of 12% pa convertible monthly: (a) Calculate the combined present value of an immediate annuity payable monthly in arrears such that
Assuming an interest rate of 12% pa convertible monthly: (a) Calculate the combined present value of an immediate annuity payable monthly in arrears such that payments are E1,000 pa for the first 6 years and E400 pa for the next 4 years, together with a lump sum of 2,000 at the end of the 10 years 13 marks] Calculate the amount of the level annuity payable continuously for 10 years having the same present value as the payments in (a) (b) 3 marks] Calculate the accumulated values of the first 7 years' payments at the end of the 7th year for the payments in (i) and (ii). (c) 3 marks]
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