Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near term. He anticipates his first annual cash flow from the technology to be $212,000, received two years from today. Subsequent annual cash flows will grow at 4 percent in perpetuity.

What is the PV of the technology if the discount rate is 10 percent? (Do not round intermediate calculations. Round the answers to 2 decimal places. Omit $ sign in your response.)

Present value of the technology $

2.

Audrey Sanborn has just arranged to purchase a $550,000 condo in Vancouver with a 20 percent down payment. The mortgage has a 8.5 percent stated annual interest rate, compounded monthly, and calls for equal monthly payments over the next 15 years. Her first payment will be due one month from now. However, the mortgage has an eight-year balloon payment, meaning that the balance of the loan must be paid off at the end of year 8. There were no other transaction costs or finance charges.

How much will Audreys balloon payment be in eight years? (Do not round intermediate calculations. Round the answer to 2 decimal places. Omit $ sign in your response.)

Balloon payment (PV) $