1.) You will require $740 in 6 years. If you earn 4% interest on your funds, how much will you need to invest today in order to reach your savings goal? (Do not round intermediate calculations. Round answer to 2 decimal places.)

Present value: $_________

2.) Compute the future value of a $170 cash flow for the same combinations of rates and times: (Do not round intermediate calculations. Round answer to 2 decimal places.)

Future Value

a. r = 10%, t = 9 years $

b. r = 10%, t = 18 years

c. r = 5%, t = 9 years

d. r = 5%, t = 18 years

3a.) What is the present value of a 3-year annuity of $170 if the discount rate is 5%? (Do not round intermediate calculations. Round answer to 2 decimal places.)

3b.) What is the present value of the annuity in (a) if you have to wait 2 years instead of 1 year for the first payment? (Do not round intermediate calculations. Round answer to 2 decimal places.)