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Calculate the following using all of the above constructed tables: (j) Consider a special annuity of a duration of 21 years with the following cash
Calculate the following using all of the above constructed tables: (j) Consider a special annuity of a duration of 21 years with the following cash flows: The payment rate during year 3k + 1 (i.e., between time 3k and time 3k + 1) is $(80+ (k 1) 3||i=0.00990163) per annum. The annual cash flow made in arrears in year 3k + 2 (i.e., at time 3k + 2) is $81. Given an effective annual rate of 0.990163% and that the value of 3i=0.00990163 is 2.97068247, calculate the present value of this special annuity at time 0. (10 marks) Calculate the following using all of the above constructed tables: (j) Consider a special annuity of a duration of 21 years with the following cash flows: The payment rate during year 3k + 1 (i.e., between time 3k and time 3k + 1) is $(80+ (k 1) 3||i=0.00990163) per annum. The annual cash flow made in arrears in year 3k + 2 (i.e., at time 3k + 2) is $81. Given an effective annual rate of 0.990163% and that the value of 3i=0.00990163 is 2.97068247, calculate the present value of this special annuity at time 0. (10 marks)
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