Question: 1. A perpetuity-due has monthly payments in this pattern: Q, 2Q, 3Q, Q, 2Q, 3Q, Q, 2Q, 3Q, . . . The present value of

1. A perpetuity-due has monthly payments in this pattern: Q, 2Q, 3Q, Q, 2Q, 3Q, Q, 2Q, 3Q, . . . The present value of the perpetuity is $700,000 and the effective annual discount rate is 6%. Find Q.

2. A 30 year annuity-immediate has first payment $1200 and each subsequent payment increases by 0.5%. The payments are monthly and the annual effective rate is 8%. Find the accumulated value of the annuity at the end of 30 years.

3. A 20 year annuity has annual payments which increase by $500 each year. The first payment is $10,500 on Jan. 1, 2018. The annual effective interest is 1%. What is the value of the annuity on Oct. 1, 2017?

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