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Consider a 20-year annuity-immediate with level payments of 100 valued at 10% annual effective rate. i) Find the price of the annuity (851.36). ii) Find

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Consider a 20-year annuity-immediate with level "payments of 100 valued at 10% annual effective rate. i) Find the price of the annuity (851.36). ii) Find Dmacio) (7.508075). iii) Find Cmac(io). iv) Write down an expression for the second-order macaulay approximation to the price at a given intrest rate i. v) What is the approximate price using the expression in v) when interest rate is 6%? vi) What is the actual price when interest rate is 6%? vii) Find the error and the % error when interest rate is 6%. Consider a 20-year annuity-immediate with level "payments of 100 valued at 10% annual effective rate. i) Find the price of the annuity (851.36). ii) Find Dmacio) (7.508075). iii) Find Cmac(io). iv) Write down an expression for the second-order macaulay approximation to the price at a given intrest rate i. v) What is the approximate price using the expression in v) when interest rate is 6%? vi) What is the actual price when interest rate is 6%? vii) Find the error and the % error when interest rate is 6%

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