1. you plan to deposit into your bank account $200 today, $300 next year and $400 at the end of year, and then to withdraw your full balance at the end of year 4, if you can earn 5% per year, how much would you have in your account by the end of year?

a. $849

b. $900

c. $1,031

d. $1218

2. a perpetuity of $600 per year will begin 3 years from today. if want to earn an annual return of 7%, what would be the value or price of the perpetuity today?

a. $7487

b. $8571

c. $9469

d. $10089