Question: Please show work! 1. An annuity due is an equal period cash flow at the beginning of each year for a given number of years.

Please show work!

1. An annuity due is an equal period cash flow at the beginning of each year for a given number of years. What is the future value of an annuity due of $1,500 per year for 17 years at 6 percent interest?

2. Riley owes $5,000 on a bank loan, and that it is to be repaid in a lump sum at the end of 5 years. If the lender is willing to accept $3,000 today in full settlement of the loan, what annual rate of return (discount rate) is the lender effectively offering her.

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