QUESTION 4 [TOTAL MARKS: 5] An investor is considering purchasing an increasing annuity payable annually in arrears for 20 years. The investor may purchase an annuity where the first payment is 2,000 and subsequent payments increase by 200 per year. The investor wishes instead to purchase an alternative annuity where the annuity payments increase at a constant compound rate of 4% per annum. Assuming an effective rate of interest of 7% per annum, calculate the initial payment under the alternative annuity if the price remains the same. TEnd of Question41