Which of the following best describes an annuity-immediate?
Question 2
What is the present value of an annuity-immediate of $1$ per annum for $n$ years at an interest rate of $i$?
Question 3
If an annuity-due has payments of $P$ at the beginning of each year for $n$ years, how does its present value relate to an equivalent annuity-immediate?
Question 4
A perpetuity-immediate makes annual payments of $100$ forever, with an annual effective interest rate of $5\% $. What is its present value?
Question 5
Which type of annuity has payments that increase or decrease over time?
