Never round intermediary steps (or keep at least 4 decimal places), SHOW ALL WORK, and LABEL your answers.

Problem #3: Calculating PV of Annuity Cash Flow Streams You have an interview with a company offering you two different salary arrangements. Assume the appropriate interest rate is 7% compounded monthly Salary per Month Length of Time Signing Bonus Option 1 $ 8,400 2 Years $ Option 2 $ 7,100 2 Years $ 38,000 A. Find the Present Value of Option number 1: B. Find the Present Value of Option number 2 (Hint - the signing bonus occurs at time t-o): C. Which would you pick? Problem #4: Calculating the Number of Payments You believe that you can make payments of $210 per month into an IRA that has guaranteed you a 6% interest rate compounded monthly A. How many payments will you have made when your account balance reaches $57,000? Hint: Align pet and rate terms, use a negative for payments because it is your outflow B. How many years is that? Hint: Part A should equal the number of months and partial months Below Question is unrealated to A & B One of your customers is behind on their accounts payable balance. You have agreed to a repayment schedule of $530 per month. C. If you charge 0.93% per month interest on the overdue balance of $14,750, how long will it take for the account to be paid off (in years)