What is the present value of a series of payments received


1. What is the present value of a series of payments received each year for 4 years, starting with $100 paid one year from now and the payment growing in each subsequent year by 6%? Assume a discount rate of 9%.

Please round your answer to the nearest cent.

2. The returns of Stock A and Stock B have correlation = 0.4. The variance of Stock A is 0.20 and the variance of Stock B is 0.15. What is the variance of a portfolio that invests $5,000 in Stock A and $15,000 in Stock B?

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Financial Management: What is the present value of a series of payments received
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