1. If you are willing to pay $48,302.00 today to receive $4,446.00 per year forever then your required rate of return must be ____%. Assume the first payment is received one year from today.

2. What discount rate would make you indifferent between receiving $3,478.00 per year forever and $5,507.00 per year for 22.00 years? Assume the first payment of both cash flow streams occurs in one year.

3. Suppose you deposit $3,000.00 into an account today. In 7.00 years the account is worth $3,966.00. The account earned ____% per year.