2.

What is the present value of $1,500 per year, at a discount rate of 10 percent, if the first payment is received 8 years from now and the last payment is received 27 years from now?

a) $6,422.14

b) $6,438.79

c) $6,553.21

d) $12,870.35

e) $3,097.03

1.

An investment will pay you $20,000 in 6 years. The appropriate discount rate is 9 percent compounded daily.

What is the present value?

a) $12,238.53

b) $11,655.74

c) $12,005.41

d) $11,925.35

e) $11,072.95