1. Your car dealer is willing to lease you a new car for $329 a month for 60 months. Payments are due on the first day of each month starting with the day you sign the lease contract. If your cost of money is 2.9 percent, what is the current value of the lease?
2. You are scheduled to receive annual payments of $9,400 for each of the next 23 years. The discount rate is 7.0 percent. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year?