What is the real increase in value if $1,500 is invested for one year at 5% interest and the rate of inflation during that time is 1.79%?

 A sport organization has a commitment from a sponsor for a $17,000 payment in three years. What is the present value of that money if it is discounted at (I) 3%, (II) 5%, and (III) 9%?

 Suppose you are the financial manager for a recreation center that has signed an option to purchase new elliptical machines for $22,000 in two years. If you have an investment opportunity that guarantees 7% interest, how much must you invest to have the necessary funds to purchase the elliptical machines?

An athlete signs a five-year endorsement deal with a prominent sponsor. Under this deal the athlete will receive $5,000 each year for the first three years and $6,500 each year for the final two years. What is the present value of the total deal if the payments are discounted at 6%?