1. Consider an annuity that pays £500 at the end of each year for 7 years. The annual effective interest rate is 7% p.a. Compute the present value of this cashflow £ 数字 Enter an answer correct to 2 decimal places Compute the effective duration of this cashflow 数字 Enter an answer correct to 2 decimal places 2. A payment of £60 will be made in 10 years. The annual effective interest rate is 6% p.a. Compute the convexity of this payment 数字 Enter an answer correct to 2 decimal places

Compute the present value of a perpetuity that pays $6,744 annually given a required rate of return of 9 percent per annum. Round your answer to 2 decimal places; record your answer without commas and without a dollar sign.       Answer   Question 4             Assume that you deposit $3,956 each year for the next 15 years into an account that pays 20 percent per annum. The first deposit will occur one year from today (that is, at t = 1) and the last deposit will occur 15 years from today (that is, at t = 15). How much money will be in the account 15 years from today? Round your answer to 2 decimal places; record your answer without commas and without a dollar sign.

a) Compute the present value of an annuity immediate that pays £100 at the end of each month for 5 years at a rate i = 7.5% p.a. effective. b) Compute the accumulated value after 10 years of an annuity due that pays £10,000 per year in equal quarterly installments at a rate i = 7.5% p.a. effective

Directions: Determine the kind of annuity used in the following situations. Then, solve the problem. Show complete solutions.  What equal payments at the beginning of each 2 months for 4 years will discharge a debt of P180,000 due now if the interest rate is 18.48% compounded every 2 months? a. Kind of annuity: b. Computation: