Question

Asked Mar 4, 2019

18 views

Step 1

**a.** **Calculation of Value of Annuity 7 years from now: **

To calculate the value of annuity 7 years from now, it is necessary to calculate the monthly rate, semi-annual rate and present value of annuity 11 years now. The workings are shown below,

Step 2

**Calculation of monthly rate**

The monthly interest rate of 11% is compounded monthly.

Step 3

**Calculation of semi-annual rate:**

The payments are made of semi-annual basis which means two payments ...

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