Question: 5. A man has two annuities-immediate with the same interest rate and the same level payments. The first is a 30-year annuity an d the

5. A man has two annuities-immediate with the same interest rate

5. A man has two annuities-immediate with the same interest rate and the same level payments. The first is a 30-year annuity an d the second one is a 15-year deferred 15-year annuity-immediate. The present value of the first is 4 times the present value of the second. Find the interest rate. (A) 73% (B) 7.4% (C) 75% (D) 7.6% (E) 7.7% 6. A man purchases a 30-year annuity-immediate that makes annual payments. The first 10 payments are 200, the next 10 are 400 and the last 10 are 300. The annuity earns 6.5% annually. What is the present value of this annuity? (A) 3582 (B) 3617 (C) 3675 (D) 3713 (E) 3753

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