2. Rebecca Smith just graduated from college and received a job managing a ranch. Her salary will be $25,000 per year. If she is guaranteed a 5% raise each year, what will her salary be in 23 years? 3. If you could buy a bond now and five years later sell it for $40,000, what would you be willing to buy it for, assuming an 8% discount rate and no other cash flows? 4. Twenty years ago, your grandfather deposited $800 in a savings account earning 5% annually, with interest compounded on a quarterly basis. What is that savings account worth today? What would the savings account be worth if interest were compounded monthly? 5. You have just struck oil in the middle of your hay field. An oil company has offered to pay you a perpetual annuity of $12,500 per year for the rights. The value of the offered annuity, assuming a 10% discount rate is calculated using the following formula: V = where V. is the future value of the series of payments, A is the present value of the annuity, and i is the interest rate