Question: The annually compounded discount rate is 5.5%. You are asked to calculate the present value of a 12-year annuity with payments of $50,000 per year.

The annually compounded discount rate is 5.5%. You are asked to calculate the present value of a 12-year annuity with payments of $50,000 per year. Calculate the present value for each of the following cases. (a) The annuity payments arrive at one-year intervals. The first payment arrives one year from now. (b) The first payment arrives in 6 months. Ensuing payments arrive at one-year intervals, i.e., at 18 months, 30 months, and so on

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