PV of unequal cash flows Suppose you have an incentive deal worked out with your father. For every year you survive college with an acceptable GPA, you get compensated. Since the classes get harder, the compensation goes up each year. You have just finished your freshman year, so you have three more years.

When you successfully complete your sophomore year (at the end of year 1), you will receive $500, while at the end of your junior year (the second year), you will receive $1,000. Finally, at the end of your senior year, you will receive

$1,500. What is the present value of this stream of payments if the interest rate is 6 %, compounded monthly?