Risk Management

4. Given a payment of $3 for 10 years paid at a continuous rate and an annual effective rate of interest i=4%, find the AV of this continuous annuity. Also, how would you use the BA II plus to solve this problem? 5. Deposits of $50 are made at the end of each year for n years and $100 at the end of each year of the next n years. The AV of this annuity at the time of the last payment (i.e., at the end of 2n years) is $3000. The annual effective rate of interest is such that (1+i) n =1.7. Determine