1.What is the present value of following streams of future cash flows if the discount rate is 11%?

Year 1: $10,000

Year 2: $11,000

Year 3: $13,000

a. $35,847

b. $27,949

c. $33,521

d. $29,067

e. None of the above

2. Suppose you can afford to invest $1,000 each month into an account that pays 15% per year. How many years will you need to make this monthly investment for your account to be worth $2,000,000? (Assume the first investment will begin one month from today)

a. 21.86 years

b. 20.08 years

c. 16.55 years

d. 13.33 years

e. None of the above

3. If you were to invest $1,000 each year for the next 40 years, then what rate of return is required for your investment to be worth $1,000,000? (Assume the first payment will begin one year from today)

a. 10.51%

b. 18.85%

c. 14.80%

d. 21.25%

e. None of the above