ou are evaluating two annuity investments using a discount rate of 8% p.a. innuity 1 - This annuity has 8 semi-annual payments in advance which grow at 0.8% very 6 months. The first payment is $800. - The cashflow stream in this annuity resembles a/an (1 mark) - The inputs to calculate this annuity value are: PMTorCF=n=i=g=(0.5mark)(0.5mark)(0.5mark) - The value of this annuity today is: (1 mark) Annuity 2 - This annuity pays $130 every month in advance for 4 year. - The cashflow stream in this annuity resembles a/an (1 mark) - The inputs to calculate this annuity value are: - PMT or CF= (0.5 mark) n=(0.5 mark) ii=(0.5 mark ) g=(0.5 mark) - The value of this annuity today is: (1 mark) - The cashflow stream in this annuity resembles a/an (1 mark) - The inputs to calculate this annuity value are: PMTorCF=n=i=g=(0.5mark)(0.5mark)(0.5mark) - The value of this annuity today is: (1 mark) You are asked to pay $5,000 to buy any one of the investments. Which investment will you buy (if any)? Answer: (1 mark). Calculate the gain. Answer: (1 mark) (Blank answers are marked incorrect)