Exercise 4. A landlord is planning to receive periodically for a year EUR 2,500 every month with an interest of 3%. What would be the present value of the annuity due? PMT n 2.500 12 mthly rate: 3 % 0 % 1 PV of annuity due = P x 1 - ( 1+r) -" x ( 1+r). (r) i. t 29.592 30.416 annuity due FV of annuity due = PMT x ((((1+r)^{t*n)-1) (r) 1 WN monthly semi ammuanlly annually quaterly n = 12 n = 2 n = 1 2 3 4 5 PV of rentals = FV of annuity due PMT at the beg.of month Months 2.500 2.500 2.500 2.500 2.500 2.500 2.500 2.500 2.500 2.500 2.500 2.500 n = 4 6 7 8 9 10 11 12