1. An initial investment on plant and machinery of $8,320 is expected to generate cash inflows of $3,411 , $4,070 , $5,824 and $2,065 at the end of first, second, third and fourth year respectively. At the end of the fourth year, the machinery will be sold for $900 . Calculate the present value of the investment if the discount rate is 18%. Round your answer to nearest thousand dollars.

2.

You saving up to buy a car. You plan on making your first savings deposit one year from today, and then making deposits for the following 3 years. These are the amounts you plan to save at the end of each year:

Year	Projected Savings Amount
1	$1,500
2	$3,000
3	$2,200
4	$3,000

You expect to earn an annual rate of 9% per year throughout. What amount will you have available at the end, at time 4, when you will buy the car?

3.

A person who is now 30 years old is planning for his retirement. He expects to save $5,000 each year for the next 35 years. Based on the current yield curve, he expects to earn an average rate of 5% per year. He will make the first deposit to his retirement savings account exactly one year from today. How much will he have in his retirement savings account in 35 years?

4.

A person who is now 30 years old is planning for his retirement. He hopes to have a total of $500,000 available when he retires in 35 years. Based on the current yield curve, he expects to earn an average rate of 5% per year. He will make the first deposit to his retirement savings account exactly one year from today. How much must he save each year to reach his retirement savings goal in 35 years?

5.	You just received your first credit card statement and the APR listed is 21.7%. When you look closer at the statement you see that its compounded daily? Whats EAR?