1. An investment promises the following cash flow streams at the end of each year: $1,000 at year 1 through 4; $2,000 at year 5 through 10; $3,000 at year 11 through 13; and $5,000 at year 14 through 15. At a discount rate of 5%, what is the present value of these cash flow streams?

2.

You want to go to grad school 3 years from now, and you can save $5,000 per year for consecutive three years, beginning immediately. You plan to deposit the funds in a mutual fund which you expect to return 9% per year. Under these conditions, how much will you have 3 years from now?

		A. $14,976.84
		B. $16,110.34
		C. $17,513.68
		D. $17,865.65
		E. $18,349.15