1.The Miami Dolphins are considering paying Jonathan Martin a lump sum of $16962000 three years from now as part of a settlement. If the relevant discount rate is 6 percent, what is the present value of this liability?

2.Assume the total cost of a college education will be $237000 when your child enters college in 20 years. You presently have $50000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? Enter answer as 3 decimal places (e.g. 0.123)

3.You plan to retire in 30 years. You are debating whether to deposit $40000 into an account earning 15 percent annually today or waiting 10 years before making the deposit.How much morewill be in the account when you retire in 30 years if you make the deposit today as opposed to waiting 10 years to make the first deposit?

4.You currently have $8400. You plan on investing it at 12 percent per year until you have $51400. How long will you wait until you achieve this goal? Enter the answer with 2 decimals (e.g. 1.23).

5.Investment X offers to pay you $4400 per year for 10 years, whereas Investment Y offers to pay you $2900 per year for 8 years. How much higher is the present value investment X if the discount rate is 13 percent?

6.An investment offers $12900 per year for 8 years, with the first payment occurring 1 year from now. If the required return is 10 percent, what is the value of the investment?

7.An investment offers $900 per year for 8 years, with the first payment occurring2 yearsfrom now. If the required return is 9 percent, what is the value of the investment? (HINT: Remember that when you calculate the PV of the annuity, the claculator gives you the present value of the annuity1 period before the annuity starts. So if the annuity starts in year 7, that calculator will to give you the persent value of annuity in year 6. Now you have to bring this number to period 0 by inputting: N=6 (1 period before the annuity starts, in your case it would be a different number depending when your annuity starts) R=9FV=Present value of annuity you found in step 1. And you solve for PV)