1. Ted Roberts has been offered the following future payments n years from today. If his opportunity cost is i, compounded annually, what value would he place on each opportunity?

Future Value ($)	Interest Rate (%)	Years	Present Value ($)
8800	5%	12
6200	7%	28
6700	15%	26
2700	13%	21

2. For each of the following cases, find the present value at time zero at the given nominal interest rate.

Number of Compounding Periods in the Year (m)	FV Deposit ($)	Nominal Interest Rate (%)	Deposit Periods (Yrs)	Present Value ($)
1	300	19%	8
2	800	14%	19
12	400	3%	4

3. Maria expects to receive a payment of $34,000 in 6 years. At a discount rate of 8%, what is the present value of this payment?

4. Find the present value of the following mixed stream of cash flows (as of Year 0) using a discount rate of 13%. Assume the cash flows are received at the end of each year.

Year	Cash Flow Stream
1	8000
2	4000
3	3000