1. An annuity-immediate paying X at the end of first year, with each subsequent payment decreased by 60 for 30 years, has a present value of 31,300. If i=0.6%, calculate X.
a. 1,964
b. 1,986
c. 2,024
d. 2,025
e. 1,936
2. An annuity-immediate pays 40 per year for 10 years, then decreases by 1 per year for 19 years.
At an annual effective interest rate of 8%, the present value is equal to X. Calculate X.
a. 375
b. 301
c. 412
d. 458
e. 74