6. A perpetuity-immediate that pays 100 per year is exchanged for a 25-year annuity-immediate that will...

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6. A perpetuity-immediate that pays 100 per year is exchanged for a 25-year annuity-immediate that will pay at the end of the first year. Each subsequent annual payment will be 8% greater than the preceding payment. The annual effective rate of interest is 8%. Calculate x. 7. Alice buys a 5-year increasing annuity for x. Alice will receive 2 at the end of the first month, 4 at the end of the second month, and for each month thereafter the payment increases by 2. The nominal interest rate is 9% convertible quarterly. Calculatex. 6. A perpetuity-immediate that pays 100 per year is exchanged for a 25-year annuity-immediate that will pay at the end of the first year. Each subsequent annual payment will be 8% greater than the preceding payment. The annual effective rate of interest is 8%. Calculate x. 7. Alice buys a 5-year increasing annuity for x. Alice will receive 2 at the end of the first month, 4 at the end of the second month, and for each month thereafter the payment increases by 2. The nominal interest rate is 9% convertible quarterly. Calculatex.