Calculating Present Values
Response to the following problem:
A three-year annuity of six £5,000 semi-annual payments will begin 10 years from now, with the first payment coming 10.5 years from now. If the discount rate is 10 per cent compounded monthly, what is the value of this annuity five years from now? What is the value three years from now? What is the current value of the annuity?