Investment X offers to pay you $5,800 per year for nine years, whereas Investment Y offers to pay you $8,300 per year for five years.

Calculate the present value for Investments X and Y if the discount rate is 5 percent. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Investment X= $

Investment Y= $

Calculate the present value for Investments X and Y if the discount rate is 15 percent. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Investment X= $

Investment Y= $

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An investment offers $5,600 per year for 15 years, with the first payment occurring one year from now.

If the required return is 6 percent, what is the value of the investment today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Present value =

What would the value today be if the payments occurred for 40 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Present value =

What would the value today be if the payments occurred for 75 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Present value =

What would the value today be if the payments occurred forever? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Present value =

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The Perpetual Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $17,500 per year forever.

If the required return on this investment is 5.7 percent, how much will you pay for the policy? (Round your answer to 2 decimal places, e.g., 32.16.)

present value =

Suppose the Perpetual Life Insurance Co. told you the policy costs $420,000. At what interest rate would this be a fair deal? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Interest rate =