1. Your father invested a lump sum 25 years ago which earned 6.5% interest per year. Today, he gave you the proceeds of that investment which totaled $60,346. How much did your father originally invest?

2. What is the present value of $125,000 to be received 10 years from today if the discount rate is 7.5%?

3. Stuart needs $60,000 as a down payment for a house 5 years from now. He earns 3% per year on his savings. Stuart can either deposit one lump sum today for this purpose or he can wait a year and deposit a lump sum. How much additional money must he deposit if he waits for one year rather than making the deposit today?