Assignment:
Q1. What is the present value of a series of payments received each year for 9 years, starting with $300 paid one year from now and the payment growing in each subsequent year by 3%? Assume a discount rate of 5%.
Please round your answer to the nearest cent.
Q2. What is the present value of a series of payments received each year for 6 years, starting with $500 paid one year from now and the payment growing in each subsequent year by 5%? Assume a discount rate of 8%.
Please round your answer to the nearest cent.
Q3. What is the present value of a series of payments received each year forever, 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.
Q4. What is the present value of a series of payments received each year forever, starting with $400 paid one year from now and the payment growing in each subsequent year by 9%? Assume a discount rate of 11%.
Please round your answer to the nearest cent.
Provide complete and step by step solution for the question and show calculations and use formulas.