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1. (a) You are offered an annuity that pays $200 at the end of each month, starting at the end of the current month and...

1. (a) You are offered an annuity that pays $200 at the end of each month, starting at the end of the current month and lasting for four years. The annual interest rate is 3.2% compounded monthly. What is the present value of this annuity?

(b) Suppose you need the payments from question 1a to occur at the start of each month. What is the new present value?

(c) A third annuity has the same payment schedule and interest rate to that of question 1b but has present value $12000. Find the value of the regular payments

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4) Pajment per nonth 200 t : 4yeas So ev Pnt (1-(1+ n 20011-(1to 0321-48 12 2 48999.5 I)1)ud-N (1 t) +0.0321-Y8 /2- doo (1-(1

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