3) 4) Using the PV(annuity) formula we derived in class, calculate the PV of an annuity of $500.00 per year for 4 years at r = 5%. Show that your answer is simply your answer to #2 above minus your answer to #3 above. Calculate the PV of a growing perpetuity of $500.00 per year at an interest rate r = 5% and growth rate of 3%, whose 1st payment starts in 5 years.

3) Using the PV(annuity) formula we derived in class, calculate the PV of an annuity of $500.00 per year for 4 years at r=5%. Show that your answer is simply your answer to $2 above minus your answer to \#3 above. 4) Calculate the PV of a growing perpetuity of $500.00 per year at an interest rate r =5% and growth rate of 3%, whose Itt payment starts in 5 years