Question: This is the problems and keys in book. Please help me how to solve it, thank you. 8. An annuity pays out $20 000 per

This is the problems and keys in book. Please help me how to solve it, thank you. 8. An annuity pays out $20

This is the problems and keys in book. Please help me how to solve it, thank you.

8. An annuity pays out $20 000 per year in perpetuity. If the interest rate is 5% compounded annually, find (a) the present value of the whole annuity (b) the present value of the annuity for payments received, starting from the end of the 30th year (c) the present value of the annuity of the first 30 years. 8 (a) $400 000 (b) $92 550.98 (c) $307 449.02

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