1. A corporate client is retaining you for 4 years as its lawyer. The firm has offered you your choice of $1,000 at the end of each of the four years or $3,000 today. The appropriate discount rate is 15%. You should

options: A) take the $1,000 a year because its present value is $17,490.

B) take the $3,000 because the present value of $1,000 a year is $2,798.

C) take the $3,000 because the present value of $1,000 a year is $2,855.

D) take the $1,000 a year because its present value is $2,912.

2. An investment advisor promises to triple your investment in 9 years. She is promising an annual rate of return of about

Question 3 options:

A)

16.99%

B)

14.72%

C)

12.98%

D)

16.81%