No Excel solution required Derive a formula that calculates the present value of an annuity that pays $1376 pa quarterly in perpetuity given an annual effective rate of interest of 3.7%. What is the value of the real difference between this annuity being paid in advance versus in arrears? (10 marks)

(b) A company expects to receive a continuous cash flow over the next 2 years from Internet sales at a rate of $(762.3 + 1.8t) per week where t is measured in weeks. Assuming that the risk-free rate is going to remain at 0% for this period, and that the current balance is $10,052, what will be the balance at the end of the 2 years if no withdrawals are made?