1.- An investment offers $5,100 per year for 20 years, with the first payment occurring now. If the required return is 9 percent, what is the value of the investment? What would the value be if the payments occurred for 40 years? (15 points)

2.- A new Fintech designed a new security that pays a semesterly dividend of $5 in perpetuity. The first dividend occurs one semester from today. What is the price of the security if the stated annual interest rate is 5 percent, compounded semesterly? (20 points)

3.- What is the present value of an annuity of $500 per year, with the first cash flow received five years from today and the last one received 25 years from today? Use a discount rate of 3.5 percent. (15 points)

4.- Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $55,000, and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 3 percent of your annual salary in an account that will earn 12 percent per year. Your salary will increase at 3 percent per year throughout your career. How much money will you have on the date of your retirement 40 years from today? (20 points)

5.- What is the value of an investment that pays $10,000 every other year forever, if the first payment occurs today and the discount rate is 13 percent compounded daily? What is the value today if the first payment occurs two years from today? Assume 365 days in a year. (15 points)

6.- What is the value of an investment that pays $20,000 every year forever, if the first payment occurs at the end of the first year and the discount rate is 12 percent yearly, if the cash flow has a yearly reduction of 3% year over year? (15 points)