Calculate the year annuity factor

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Question - a) If the 1-year discount factor is .905, what is the 1-year interest rate?

b) If the 2-year interest rate is 10.5%, what is the 2-year discount factor?

c) Given these 1- and 2-year discount factors, calculate the 2-year annuity factor?

d) If the PV of $10 a year for three years is $24.65, what is the 3-year annuity factor?

e) Using your answers above, find the 3-year discount factor?

Reference no: EM132727480

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