1 ) Mike Polanski is 30 years of age and his salary next year will be $41,400. Mike forecasts that his salary will increase at a steady rate of 5% per annum until his retirement at age 60.

a. If the discount rate is 10.5%, what is the PV of these future salary payments? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value $

b. If Mike saves 5% of his salary each year and invests these savings at an interest rate of 10.5%, how much will he have saved by age 60? (Do not round intermediate calculations.Round your answer to 2 decimal places.) Future value $

c. If Mike plans to spend these accumulated savings in even amounts each year over the subsequent 20 years, how much can he spend each year starting with his 61st birthday? (Do not round intermediate calculations.Round your answer to 2 decimal places.) Present value $

2 ) A leasing contract calls for an immediate payment of $116,000 and nine subsequent $116,000 semiannual payments at six-month intervals. What is the PV of these payments if the annual discount rate (i.e. EAR) is 9%? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)Present value $