1. A money machines that will pay $2,000 per year for 20 year is worth $ ____ today. Assume a 5% interest rate and that the first payment is made one year from today.

2. you will deposit $200 per year for 15 years into an account that earns 4%. the first deposit is made next year. How much will be in the account 15 years from today?

3. If you are willing to pay $1 800 today to receive $70 per year forever, then your required rate of return must be __%. Assume the first payment is recived one year from today.