Question: The annually compounded discount rate is 5 . 5 % . You are asked to calculate the present value of a 1 1 - year

The annually compounded discount rate is

5.5 % .

You are asked to calculate the present value of a

11 -

year annuity with payments of $

50, 200

per year. Calculate the PV if the annuity payments arrive at one

-

year intervals. The first payment arrives one year from now. Calculate the PV if the first payment arrives in six months. Following payments arrive at one

-

year intervals

(

.

.,

18

months,

30

months, etc.

) .

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