1. You just received an inheritance from your favorite aunt of $1000 payable exactly 10 years from today. If you expect to be able to earn 8% per year on your investments, what is the present value of the inheritance?

2. You just graduated and took your first job as a financial advisor. You want to retire at the age of 60 which will be exactly 38 years from today. How much would you have to save per year, starting one year from today, if you want to have $5,000,000 when you retire? Assume that you will make fixed annual payments at the end of each year and that you expect to earn an effective annual rate of return of 7% on your investments.

3. You just received an inheritance from your favorite uncle that deposits an initial $10,000 into a savings account today and then makes annual deposits that grow by 2% per year for the next 10 years. What is the present value of the inheritance?

4. You have been fortunate enough to start a successful tech company and become very wealthy. You decide that you want to endow a professorship at your alma mater. You want the endowment to pay out $50,000 one year from today and an amount that grows by 2% per year forever thereafter. If you expect to earn 6% annually on your investments, how much will you have to pledge to fund the endowment in perpetuity?

5. If is a 3-year zero-coupon US Treasury bond trading for $97.44 per $1,000 face value, what is the 3-year risk-free rate?

6. You are considering purchasing a new Tesla Model 3. The list price is $67,810. Tesla offers you options for purchasing the car. One, pay the $67,810 in cash. Two, pay 1.75 bitcoin. If the current $/bitcoin exchange rate is $33,23.5 per bitcoin, which option should you choose? (Assume that the $/Bitcoin exchange rate will remain stable until you finish the transaction).