1. An investment will pay you $23,000 in 8 years. The appropriate discount rate is 7 percent compounded daily. What is the present value?

$13,795.44 $12,481.59 $13,386.21 $13,138.51 $13,532.67

2. You are planning to make monthly deposits of $160 into a retirement account that pays 10 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 27 years?

$263,312.39 $250,146.77 $276,478.00 $3,159,748.62 $232,511.89

3. You have just won the lottery and will receive $500,000 in one year. You will receive payments for 28 years, and the payments will increase 4 percent per year. If the appropriate discount rate is 11 percent, what is the present value of your winnings?

$37,114,133 $37,114,133 $5,750,435 $5,990,036 $26,911