1. An annuity provides a payment of $n at the end of each year for n years. The effective annual interest rate is 1/n. What is the present value of the annuity ?
2. John deposits $1,000 in an account with nominal annual interest rate of 4.5% compounded quarterly for 5 years. What is the value of the account at the end of 5 years?
3. Explain the factors determining the financial needs of a business organisation.