1 Suppose you will receive payments of $17,000 at the beginning of the next 19 years (i.e., the first payment is today). What is the present value of all the payments? The interest rate is 5%.

Enter your response below (rounded to 2 decimal places).

2 An investment promises to pay you $2,000 per year starting in 5 years. The cash flow from the investment is expected to increase by 4% per year forever. If alternative investments of similar risk earn a return of 11% per year, determine the maximum you would be willing to pay for this investment today.

Enter your response below (rounded to 2 decimal places).

3 You are planning for your retirement in 30 years. At that time you want to have saved $10,000,000. How much do you need to save each half-year for the next 30 years if the interest rate on your investment will be 8% per year (APR)?

Enter your response below (rounded to 2 decimal places).