Valuation II Annuities (calculation) You own two annuity investments and have a discount rate fo 12% p.a. Annuity 1 - This annuity has 6 semi-annual payments in advance, growing at 2% every 6 months. The first payment is $500. The value of this annuity today is: Annuity 2 - This annuity pays $200 every quarter for 5 years. The value of this annuity today is: You are offered $3,000 to sell any one of the investments, Which investment will you sell (if any) and calculate the gain? Answer: (Each correctly filled blank is 1/3 of the 10 marks)