1. Don Draper has signed a contract that will pay him $60,000 at the beginning of each year for the next 10 years, plus an additional $110,000 at the end of year 10. If 8 percent is the appropriate discount rate, what is the present value of this contract? a. What is the present value of $60,000 at the beginning of each year for the next 10 years if the discount rate is 8 percent?

2. Upon graduating from college 35 years ago, Dr. Nick Riviera was already thinking of retirement. Since then he has made deposits into his retirement fund on a quarterly basis in the amount of $300. Nick has just completed his final payment and is at last ready to retire. His retirement fund has earned 9% interest compounded quarterly. a. How much has Nick accumulated in his retirement account? b. In addition to all this, 15 years ago, Nick received an inheritance check for $20,000 from his beloved uncle. He decided to deposit the entire amount into his retirement fund. What is his current balance in the fund?