1. Suppose the Dutch Water Authority wanted to raise money by selling perpetuities of $134 per year, with the first cash flow paid in one year from today. If the appropriate discount rate is 5.7%, what would you be willing to pay today for this perpetuity? Round to the nearest dollar.

2. Suppose you make the following deposits into an account earning 1.9%: $13,000 today followed by $4,000 each year for the next 7 years (so the last cash flow is at year 7). How much will you have in the account after 11 years? Round to the nearest dollar.

3. Suppose you expect to receive the following cashflows: $13,000 today followed by $7,000 each year for the next 9 years (so the last cash flow is at year 9). How much is this cashflow stream worth to you today if the appropriate discount rate is 8.4%? Round to the nearest dollar.