Question: a) An annuity is structured so that you will receive yearly payments with the first payment to be received 4 years from today. The annuity

a) An annuity is structured so that you will receive yearly payments with the first payment to be received 4 years from today. The annuity consists of 6 payments of $900 followed by 8 payments of $400 and then payments of $700 continuing forever. Find the amount that you would have to pay today to receive this annuity if it has a constant force of interest of 10%. Round your answer to 2 decimal places.

b) The accumulated value of an annuity-immediate that pays $80 annually for 11 years is equal to the present value of a perpetuity-immediate that pays $85 annually when valued at the same interest rate i. Both are equal to X. Find the value of X. Round your answer to 2 decimal places.

Please answer parts a and b, I will comment and like answer :)

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