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Exercies 1. [5] We consider an annuity with n payments of 1 and an annual effective interest rate of i. The first payment is made

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Exercies 1. [5] We consider an annuity with n payments of 1 and an annual effective interest rate of i. The first payment is made at the end of the second year and the remaining payments are made at five-year interval thereafter. Prove that the present value X of this annuity is equal to: Agn+2/i-a27i X= agli

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