Q1. Find out the present value (PV) of each of given investments?
a) $6,000 due in 10 years discounted at a 10 annual rate.
b) $4,000 due in 5 years at a 6% annual rate, with quarterly discounting.
c) $12,000 due in 8 years at a 12% annual rate, with monthly discounting.
Q2. Find out the present value of given each petuities?
a) Each petuity with $1000 annual payment discounted at 10% back to today (i.e., the PV at t = 0).
b) Each petuity with $500 annual payment, with first payment received 2 years from today, discounted at 6% back to today (again, the PV at t = 0).