Annuity A pays 1 at the beginning of each year for three years. Annuity B pays 1 at the end of each year for four years. The Macaulay duration of Annuity A at the time of purchase is 0.93. Both annuities offer the same yield rate. Calculate the Macaulay duration of Annuity B at the time of purchase.

Calculate the Macaulay duration of Annuity B at the time of purchase is 1.369.

Step-by-step explanation:

First, we use 0.93 to calculate the v which equals 1/(1+i).

= 0.93

After rearranging the equation, we get 1.07 + 0.07v - 0.93=0

So, v=0.9

Mac D:

After substituting the value of v, we get Mac D = 1.369.

it will cost dollar $540

the living room is 3 which means if we divide 325/3 then we get $108

therefore if 1part of the living room cost $108 and 3 costed $325

then total 5part of the room will cost 5*108 which gives $540

r and t.

both are 64 degrees.