QUESTION 5 [TOTAL MARKS: 8] A 10 year annuity which is deferred for 3 years is purchased on 1/1/2017. Calculate the present value of the annuity which is payable quarterly in advance for the first 5 years and payable monthly in advance for the remaining 5 years. The interest rate is 8% per annum until 31/12/2024 and 4% per annum thereafter. The annual payment in each case is 1,000 per annum. [End of Question5)