T3 EIC 4 (Lecture)

Annuity 1: A car lease that runs

for 1.5 months, starts today and requires weekly payments of $840 in arrears. A

discount rate of 12% p.a. applies.

Annuity 2: A 3 month pre-paid phone plan starts in 1 month’s time and has payments in advance of

$30. A discount rate of 6% p.a. applies.

Which of the following n and i variable sets are correct to calculate the present value at the start of the above annuities? 

(select all correct answers only, selecting a wrong answer will incur a penalty to the effect that selecting all options will earn 0 marks)