An annuity immediate provides 40 annual payments. The first payment is $5000 and remaining payments increase by 7% yearly. Given that i = 5%, find the accumulated value of this annuity at the time of the last payment.
Brian wishes to buy an annuity that will provide annual payments of $1000 at time t = 2 with payments decreasing by 8% every year. The last payment is at time t = 30. Find the price of this annuity given that the effective interest rate is 3%.
Please show formulas clearly! Thanks.