1. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

(a) What is the present value of $25,600 due 12 periods from now, discounted at 5%? (Round answer to 2 decimal places, e.g. 25.25.)

Present value $ =

(b) What is the present value of $25,600 to be received at the end of each of 10 periods, discounted at 11%? (Round answer to 2 decimal places, e.g. 25.25.)

Present value $ =

2. Pharoah Company is considering an investment that will return a lump sum of $900,600, 6 years from now. What amount should Pharoah Company pay for this investment to earn an 7% return? (Round answer to 2 decimal places, e.g. 25.25.)

Lincoln Comapny should pay $ =

3. Oriole Company is considering investing in an annuity contract that will return $32,460 annually at the end of each year for 12 years. What amount should Oriole Company pay for this investment if it earns an 11% return? (Round answer to 2 decimal places, e.g. 25.25.)

Oriole Company should pay

$ =