Please Answer Manually :D

3. The nominal interest rate convertible quarterly is i(4) = 8% for both part (a) and part (b). a) An annuity-immediate consists of 80 quarterly payments. Compute the present value of this annuity if the first payment is $50,000 and each subsequent payment is $500 less than the previous payment. b) A perpetuity-due with quarterly payments has payments of $500 at t = 0, 80, 160, 240.... (where t is measured in quarterly periods) and the payments at t= 1 through t= 79, t=81 through t= 159, t = 181 through t= 239, ... are each $5 less than the previous payment A timeline diagram for this perpetuity is shown below: 500 495 490 485 ... 500 495 490 485 ... 500 495 490 485 ... 0 1 2 3 ... 80 81 82 83 ... 160 161 162 163... Compute the present value of this perpetuity. For full credit, you must use your answer from part (a) as part of the computation of this present value. 3. The nominal interest rate convertible quarterly is i(4) = 8% for both part (a) and part (b). a) An annuity-immediate consists of 80 quarterly payments. Compute the present value of this annuity if the first payment is $50,000 and each subsequent payment is $500 less than the previous payment. b) A perpetuity-due with quarterly payments has payments of $500 at t = 0, 80, 160, 240.... (where t is measured in quarterly periods) and the payments at t= 1 through t= 79, t=81 through t= 159, t = 181 through t= 239, ... are each $5 less than the previous payment A timeline diagram for this perpetuity is shown below: 500 495 490 485 ... 500 495 490 485 ... 500 495 490 485 ... 0 1 2 3 ... 80 81 82 83 ... 160 161 162 163... Compute the present value of this perpetuity. For full credit, you must use your answer from part (a) as part of the computation of this present value