1)Consider a deferred annuity with 17 annual payments of $10 starting at time t=4 and ending at t=20

1)Given an annuity,

It has N = 17 annual payments of PMT = $10 starting time t = 4.

Interest rate r = 3%

First calculating value of annuity at time t = 3, using PV formula of annuity.

Value at time t = 3, V3 = PMT*(1 - (1+r)^-N)/r = 10*(1 - 1.03^-17)/0.03 = $131.66

So, value of this annuity at time t = 14 is

V14 = V3*(1+r)^(14-3) = 131.66*1.03^11 = $182.25

So current value of annuity at time 14 is $182.25.

2)Correct answer is Option (c) The Credence attribute of New Zealnad's food and beverage exports and the impact on willingness to pay.

The premium pricing is as a result of the Credence attribute of food items. The Credence attribute shall be like Human Nutrition, Community responsibility, Environmental sustainability etc. The distance or Inability to manufacture at low costs are not the reason why the export is premium priced.