1. Mansson agrees to pay 20 premiums, annually in advance. At the end of twenty years he will receive the accumulated amount of his payments. This amount is computed on the basis of an effective annual interest rate of 8 percent for the first five years , six percent for the next seven years, and five percent for the final eight years.

Required:

1. Find the amount which Monsson will receive in return for an annual premium of $ 100.
2. Find his yield per annum on the complete transaction.