You are raising funds for a school A foundation makes the following offer. They will pay $10,000 next year, $20,000 the year after, $30,000 in year three, $40,000 in year four and starting five years from today they will pay $50,000 every year. 

What is the present value of this gift? Interest rates are 2% at all maturities.

The spot price of 5000 bushels of corn is $800. The 1-year maturity futures price for 5000 bushels of corn is $832. The storage cost for corn is 3% of its spot price, and the leasing benefit is zero. The safe interest rate is 1%. Is there an arbitrage opportunity in the market for corn futures? Assume transactions costs are negligible.