1. A payment schedule requires 20 payments of $10,000, the first payment to be made 15 years from today. Using a discount rate of 10%, what is the present value of this series of payments? (2 marks)

2. Assume the payment schedule in problem 1 changes as follows: . the payment 17 years from today is waived, and . a payment of $20,000 is made 18 years from today. The other payments are unchanged. Using a discount rate of 10%, what is the present value of this series of payments?