QUESTION3 a) A 20-year annuity certain provides payments annually of RM300 at time 1 year, RM280 at time 2 years, RM260 at time 3 years and so on, until the payments have reduced to RM100. Payments then continue at RM100 per year until the 20h payment has been made. The annual effective interest rate is 5%. Determine the present value of the annuity. (10 marks) b) A perpetuity immediate pays RMX per year. Nazrul receive the n payment, Shima receive the next n payment and Saiful receive the remaining payments. Nazrul's share of the present value of the original perpetuity is 40% and Saiful's share is K. Calculate K. (10 marks)