Question: Question 2 (8 marks) An annuity will pay $100 at the end of every month for 10 years at an effective annual rate of interest

Question 2 (8 marks) An annuity will pay $100 at the

Question 2 (8 marks) An annuity will pay $100 at the end of every month for 10 years at an effective annual rate of interest of 5%. (a) Determine the accumulated value of the annuity at the time of the final payment. [4] (m) (b) Express the present value of the payments in terms of ami at i = 5%. Explain how you obtain the required expression in your answer. 4 ani

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