1. You have just won a Colorado Lottery prize that will pay annual payments $7,573 forever. You would rather have a lump sum today rather than the future payments. If you wanted o discount those payments by 11.0%, the value of that prize in todays dollars would be $__.__.

2.

Suppose that you were to receive $105 at the end of year one, $230 at the end of year 2, and $352 at the end of year three. If the discount rate was 10% annually, the value of those cash flows today would be $__._

3.

If a bank loan for $139 had an APR of 11.3% and was to be paid back over 5 years, the annual payment would be $__.__.