Find amount of the first payment

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Problem 1: The present values of the following three annuities are equal:

(i) perpetuity-immediate paying 1 each year, calculated at an annual effective interest rate of 9.88%.
(ii) 36-year annuity-immediate paying 1 each year, calculated at an annual effective interest rate of %.
(iii) -year annuity-immediate paying 1 each year, calculated at an annual effective interest rate of ( -1)%.
Calculate .

Problem 2: A loan of $10500 is to be repaid by 10 annual payments beginning 6 months from the date of the loan. The first payment is to be half as large as the others. For the first 4 1/2 years interest is at 0.047 effective; for the remainder of the term interest is at 0.078 effective. Find amount of the first payment.

Reference no: EM132657749

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