Question 1

in 2001, the average price of a gallon of gas was $1.09. Today, the average price of a gallon of gas is $2.96. At what annual rate has a gallon of gas increased over the last 20 years? (Answer as a percent. Enter only numbers and decimals in your response. Round to 2 decimal places.)

Question 2

You are looking at an investment that will pay you $26,298 in year 2, $41,850 in year 4 and $48,987 in year 6. If your required return is 9.47%, what is the most you should pay for the investment? (In other words, how much is the project worth today?)

Question 3

An investment will pay $18,373 in 18 years. If the interest rate is 13.8%, how much is it worth today? (Round to 2 decimal places.)