1. An insurance company quotes you a policy that requires you to pay $800.00 at the beginning of each month for the following year. If you can earn 3.36% APR with monthly compounding on your investments, what is the value of this policy in today's dollars? (express as positive number)
2. An investor plans the following investments for the next 20 years: 10.00 years of $10,775.00 per year, and 10.00 years of $13,375.00 per year. She thinks his investments will earn 4.00% a year for the first 10.00 years, and then earn 10.00% per year for the last 10.00 years. How much would the investor have to set aside today if she wants to fund the entire account?
3. An investor is considering an offer to buy equity in a start-up company. The investor will not receive in cash flows from the company until 12.00 years from today. At that time he will receive 9.00 consecutive annual payments of $59,326.00. The investor wants a 22.00% return on his investment. How much can he pay today for this opportunity to receive his return?