H D E Build a model to cakulate the present value of receiving a compound annuity The first annulty pays 5 cash flows of $150 starting in year 1. The second annuity pays 7 growing cash flows starting at $150 in year 6. The second annulty's cash flows grow by 1% Assume a discount rate of 6%. Note that the first annulty will always be for 5 years, while the second annully's term can change Use your models to answer the following questions: What is the present value (time) of the first annuity's cash flows? What is the present value (time) of all cash tlows? What is the present value (time of the second annuity's cash flows? Cash Flow Discount Rate 1st Annuity Periods 2nd Annuity Periods 2nd Annuity Growth Rate $150 GN 5 7 15 Your answer 10 11 12 Correct Answer $631.85 $1,275.17 5643.32 Present Value of Cash Year Present Cash Flow Value of $1 How Instructions Household Data Sumns Bond Portfolio Sums Delayed Annuity Compound Annuit At. Mortgage Schedules 8 IU OVA La Merce Center $ % 9 Conditional Format Cor Formaning as Table Styles E24 oxfx A F 6 1 2 3 $150 6 B D E Build a model to calculate the present value of receiving a compound annuity, The first annuity pays 5 cash flows of $150 starting in year 1. The second annuity pays 7 growing cash flows starting at $150 in year 6. The second annuity's cash flows grow by 1%. Assume a discount rate of 6%. Note that the first annulty will always be for 5 years, while the second annulty's term can change. Cash Flow Discount Rate 1st Annuity Periods 2nd Annuity Periods 2nd Annuity Growth Rate 4 5 5 7 6 7 Your answer 10 11 9 10 11 12 Use your models to answer the following questions: What is the present value (time () of the first annuity's cash flows? What is the present value (time O) of all cash flows? What is the present value (time O) of the second annuity's cash flows? Correct Answer $631.85 $1,275.17 5643.32 12 Present Cash Flow Value of $1 Year Present Value of Cash Flow & 18 19 20 21 22 23 ZA 25 26 27 78 Household Data Sums Instructions Bond Portfolio Sums Delayed Annuity Compound Annuity All Mortgage Schedule