#1. You invested in a savings account that has an annual interest rate of 6.3 percent. The account credits interest daily. What is the Effective Annual Rate (EAR) of this account? (Show your answer in decimal form to four places, so if you got 12.34%, enter 0.1234 as the answer)

#2. Farmer Brown sold the mineral rights on his farm to Exxon Corporation in exchange for payments of $14,000 per year in perpetuity. Using a discount rate of 6.5 percent, compute the present value of this arrangement

#3. Investment X has the following projected cash flows over the next four years:

Year	Amount
1	$5700
2	$4900
3	$4300
4	$2000

If the opportunity cost for an investment of this level of risk is 9.1%, what is the most that you should be willing to pay for it?

#4. An investment promises cash inflows in years 1, 2, 3 and 4 of $5,218, $5,303, $15,870, and $17,604 respectively. If your required rate of return is 6.7%, what is the present value of the cash inflows for this project? (to the nearest dollar)

#5. An investment promises cash flows in years 1, 2, and 3 of $39,000. In years 4 and 5, it will pay $61,000. If your required rate of return is 9.4 percent, what is that worth today?

#6. Using a discount rate of 5.7 percent, compute the present value of the following cash flows to the nearest dollar:

Year	Cash Flow
1	$8,613
2	$9,169
3	$15,300
4	$19,344
5	$9,378