Miller's Hardware plans on saving $100, $150, and $400 at the end of each year for the next three years, respectively. How much will the firm save at the end of the 6th year if it can earn 6% on its savings? (6% is annual interest rate and assume annual compounding) [Please round your answer to the nearest whole number]

Multiple Choice

• $848

• $754

• $831

• $800

If the interest rate is 5%, which of these investments would you prefer?

Multiple Choice

• A payment of $50 a year for 20 years starting at the end of 1st year.

• A single payment of $620 at the end of 1st year.

• A payment of $616 today.

• An ordinary perpetuity of $30.