1. An investment offers payments of $6,000 at the end of Year 1, $4,000 at the end Year 2; and $2,000 at the end of Year 3. What is the present value of this investment using a 9 percent interest rate?
2. Approximately how long would it take for your money to triple if you place it in a fund earning 15% annually?
3. You have just been notified that you won the lottery. You will be paid 15 annual payments of $1,000,000, with the first one starting today. Using an interest rate of 10% (annual compounding), how much did you really win?