Your credit card has an effective monthly interest rate of 1%. If the balance on your credit card is $3,000 and you make monthly payments of $400, how many months until you pay off the balance?

 

Assume that a year from now you will begin receiving an annual payment that will grow at 2.75% for the next 9 years. The first payment will be in the amount of $9,000. If the appropriate discount rate is 5.5%.

What is the current value of these annual payments?