Melissa will receive $$10$ today. She will receive $5\%$ more each subsequent year,

until the final payment in $20$ years. What is the PV of all payments if the effective

annual discount rate is $14\%?$

Alex will receive $$25,000$ per year, forever, starting $18$ months from now. What is

the present value of this perpetuity if her effective annual discount rate is

$12\mathrm{.}36\%?$

The Buckhorn Company has a dividend payment of $$2$ later today, and the

dividend goes up by $$0\mathrm{.}20$ for each of the next five years. After the dividend

payment five years from today, the company goes out of business and does not

pay anything else to stock holders. How much is this stock worth if your effective

annual discount rate is $3\%?$