A)

Suppose that we invest $10, and receive $5, $p,$7, and $3 in years 1, 2, 3, and 4, where p is unknown. Suppose that the present value of this investment, at interest rate 10%, is $4.63. What is p (round to cents)?

B)

Consider a transaction stream consisting of

$5 every quarter for 10 years.

$1000 in 10 years

Assume an annual interest rate of 2%. What is the present value of this cash stream (interest compounded quarterly)?