1. What is the effective annual rate if the nominal rate is 7%
   1. And interest is compounded annually?
   2. And interest is compounded monthly?
   3. And interest is compounded daily (365)?

An investment pays $5,000 per year at the beginning of each year for the next 4 years and then $3,000 per year at the beginning of each year for the next 6 years. Using a discount rate of 8%, what is the GPV of these payments? _________________

You will receive $8,000 a year forever. What is the present value of this infinite stream of cash flows given a 7% discount rate? ______________

How long does it take to double your money if you can earn 12% per year compounded monthly? _______________