1. You will receive $100 per year for 10 years. The discount rate is 10%. What is the present value (PV) of this stream? 2. Explain why in the previous case the PV is much lower than the simply sum of all the cash flows 3. Give an example why time matters given the five possible causes we covered in class 4. Using the information from the first question, assume now the $100 will increase at 5% per year from year 1 . What is the new present value? 5. You look at apartment prices online. You find that a two bedroom apartment is being sold at $750,000. If the discount rate is 8% annual and the growth rate for the rent for this kind of apartments is 5% a year. What is the yearly rent associated to this present value? 6. In the neighborhood ABC you find an apartment which monthly rent is $2,500 and this increases at 4% per year. The sell price for this property is $700,000. What is the annual discount rate implicit in this problem? 7. You need a 20 -year, fixed-rate mortgage to buy a new home for $500,000. Your mortgage bank will lend you the money at a 4.5 percent APR for this 240 -month loan, with interest compounded monthly. What is the monthly payment if the bank finances you the 100% of the purchase price