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The present value of an annuity of annual cash flows, each $7,000, starting in exactly one...

The present value of an annuity of annual cash flows, each $7,000, starting in exactly one year is $100,000. The rate at which the annuity is valued is 5% p.a.

1. How many cash flows will there be?

2. What is the amount of the last cash flow?

Have a good try at this before watching the video and solution. Once you have the answer to part (1), you need to think very carefully about what it means before you can do part (2).

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