Please answer all parts and show all work, do not use excel. Please show work in a way where I can easily follow your steps and duplicate with different numbers. The answer key is at the bottom, so any answer you get must match that of one of the answer choices to be correct.

1. A 10-year annuity immediate has a first payment of X. The payment increases by 100 each year for 5 times and stays level afterwards. Under an effective annual rate of 6.5%, the present value of this annuity is 3733.2264. Calculate X

2. An amount of $1000 deposited in fund X at the beginning of this year earns an effective annual rate of 6%. At the end of each year starting this year, the interest plus an additional $100 is withdrawn from the fund. Hence, at the end of year 10, the fund is depleted. The annual withdrawals of interest as well as the additional withdrawn $100 are deposited into fund Y , which earns an effective annual rate of 9%.

What is the accumulated value of the Fund Y at the end of year 10?

Numerical answers (in random order): 11143.38, 67.82, 25514.59, 2084.67, 50.46, 67.27, 200, 7851.19, 15, 13940.93, 161.21, 0.1667 Numerical answers (in random order): 11143.38, 67.82, 25514.59, 2084.67, 50.46, 67.27, 200, 7851.19, 15, 13940.93, 161.21, 0.1667