Mrs Chubley is purchasing a guaranteed level annuity to pay for the upkeep of a cottage she owns. The annuity will pay out every two years, starting one year after purchase, with the final payment being made eleven years after purchase. She has 12,000 available to purchase the annuity and the seller uses an effective annual interest rate of 6.5% (ignoring expenses) to price annuities. ii) Draw a timeline showing the time and level of cashflows represented by this annuity. iii) Calculate the level of the payments that would be made under this annuity. [5 marks] Mrs Chubley is purchasing a guaranteed level annuity to pay for the upkeep of a cottage she owns. The annuity will pay out every two years, starting one year after purchase, with the final payment being made eleven years after purchase. She has 12,000 available to purchase the annuity and the seller uses an effective annual interest rate of 6.5% (ignoring expenses) to price annuities. ii) Draw a timeline showing the time and level of cashflows represented by this annuity. iii) Calculate the level of the payments that would be made under this annuity. [5 marks]