a) Compute the present value of an n year endowment of R to a person aged x.(10 marks)
b) Determine the effective rate, if the nominal rate is 6%, convertible continuously.(5 marks)
c) Tom wins a prize which can be taken either as a lump sum of Ksh 10,000 paid immediately or as monthly payments of Ksh 100 paid in advance for a ten year period. Assuming that interest stays at 4% per annum over this 10 year period. Which form of prize should she take. (5 marks)
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