theory of interests exercises

6. /1 points A perpetuity due pays $1,000 at the start of each year. Calculate the present value using a nominal rate of interest of 6% compounded quarterly. Answer = $ (round your answer to 2 decimal places.) 7. / points Find the accumulated value at the end of four years of an investment fund in which $120 is deposited at the beginning of each quarter for the first two years and $270 is deposited at the beginning of each quarter for the second two years, if the fund earns 12% convertible monthly Answer = $ (round your answer to 2 decimal places.) 8.-/1 points A 20-year annuity-due pays $1,200 each year. If the nominal interest rate is 8% convertible quarterly, find the present value of this annuity four years before the first payment, Answer = $ (round your answer to 2 decimal places.) 9.-/1 points Find the present value of a ten-year annuity which pays $400 at the beginning of each quarter for the first 5 years, increasing to $600 per quarter thereafter. The annual effective rate of interest is 7%. Answer = $ (round your answer to 2 decimal places.)