1. Present Value of a Perpetuity What's the present value, when interest rates are 6.70 percent, of a $120 payment made every year forever?
$804.00
$8.04
$1,791.04
$1,200.00
2. Five Years Future Value What is the future value of $20,000 deposited for five years earning 5% interest rate annually?
$25,526
$45,526
$5,526
$20,000