ITEx8.16 H

An annuity-due makes a payment of $100 now, $110 in one year, $120 in two years, and so on forever. The annual interest rate compounded monthly is 6%. Calculate the present value of the annuity. (use a decimal number, rounded to the nearest 100th, without $ sign. For example, 1234.56)

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Example 2.3.9 - 1

A perpetuity pays 6 at the end of the second year, 10 at the end of the fifth year, 14 at the end of the eighth year, and so on. Using an annual effective interest rate of 5%, calculate the present value of this perpetuity. (use a decimal number, rounded to the nearest 100th. For example, 123.45)

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234 Example 2.3.11-1 H

An increasing perpetuity-due has annual payments of 1, 3, 5, 7, 9, ... The present value of the 7th payment equals the present value of the 8th payment. Find the present value of the perpetuity. (use a decimal number, rounded to the nearest 100th. For example, 123.45)