1. Today, Sandra Saver deposited $2,750 in an account paying 9.0% APR, compounded every three months. If she makes no further deposits or withdrawals for the next 13 years, how much interest will she earn in year two?
2. The first yearly payment in a ten year annuity, $27,500, is due four years from today. The annuity earns 7.75% APR, compounded monthly. If payments increase by 3.5% per year after the first payment, how much will the annuity be worth right after the last payment is made?
3. Consider the following stream of cash flows: $500 paid today, $950 paid two years from today, and $775 paid three years from today. At an APR of 6.0% compounded every two months, what is the stream's present value?