1.Suppose that you will receive $2,500 at the end of each year for 5 years. The prevailing interest rate is 6 percent compounded annually. How much money must be offered to you today so that you're indifferent between the two choices?

$10,530.91

$9,530.90

$11,630.90

$12,500

2.What is the present value of $5,000 invested each year, at the end of the year, for the next 10 years if you earn 7 percent compounded annually?

$37,567.16

$69,082.24

$34,865.29

$35,117.91