PS7-1What discount rate would make you indifferent between receiving $3,290.00 per year forever and $5,127.00 per year for 26.00 years? Assume the first payment of both cash flow streams occurs in one year.

#4 Today is Dereks 25th birthday. Derek has been advised that he needs to have $2,399,537.00 in his retirement account the day he turns 65. He estimates his retirement account will pay 7.00% interest. Assume he chooses not to deposit anything today. Rather he chooses to make annual deposits into the retirement account starting on his 29.00th birthday and ending on his 65th birthday. How much must those deposits be?

#5 Suppose you deposit $2,008.00 into an account today. In 9.00 years the account is worth $3,524.00. The account earned ____% per year.

PS6 Derek will deposit $2,122.00 per year for 9.00 years into an account that earns 9.00%. Assuming the first deposit is made 5.00 years from today, how much will be in the account 35.00 years from today?

What is the value today of receiving $1,127.00 per year forever? Assume the first payment is made 8.00 years from today and the discount rate is 13.00%.