ID110737951

Write your student id on your paper (along with your name). Take the rst three non-zero numbers of your id and call that T. For example, if your id is 123456789, then T = 123. Take the fourth and fth number of your id and call that 11'. For example, if your id is 123456789, then a: = 45. The interest rate is 5%. You pay T today and receive a: for 5 years once a year starting next year. What is the present value of this arrangement. You are welcome to use excel or another substitute to gure out the answer. If you don't have excel, you can write down the formula to compute without loss of credit