1a.

What discount rate would make you indifferent between receiving $3,384.00 per year forever and $5,329.00 per year for 28.00 years? Assume the first payment of both cash flow streams occurs in one year.

Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

1b.

Derek decides that he needs $188,861.00 per year in retirement to cover his living expenses. Therefore, he wants to withdraw $188861.0 on each birthday from his 66th to his 85.00th. How much will he need in his retirement account on his 65th birthday? Assume a interest rate of 8.00%.

Answer format: Currency: Round to: 2 decimal places.

1c.

What is the value today of a money machine that will pay $1,372.00 per year for 25.00 years? Assume the first payment is made 8.00 years from today and the interest rate is 11.00%.

Answer format: Currency: Round to: 2 decimal places.