1. An investment promises the following cash flow streams at the end of each year: $1,000 at year 1 through 4; $2,000 at year 5 through 10; $3,000 at year 11 through 13; and $5,000 at year 14 through 15. At a discount rate of 5%, what is the present value of these cash flow streams?
2. You want to go to grad school 3 years from now, and you can save $5,000 per year for consecutive three years, beginning immediately. You plan to deposit the funds in a mutual fund which you expect to return 9% per year. Under these conditions, how much will you have 3 years from now?
A. $14,976.84
B. $16,110.34
C. $17,513.68
D. $17,865.65
E. $18,349.15