1. What is the present value of a security that will pay $25,000 in 20 years if securities of equal risk pay 7.4% annually? Do not round intermediate calculations. Round your answer to the nearest cent.

2.

Quantitative Problem: You own a security with the cash flows shown below. 1 2 3 0 660 370 260 340 If you require an annual return of 10%, what is the present value of this cash flow stream? Do not round intermediate calculations. Round your answer to the nearest cent