1. What is the present value of the following annuity? $1,887 every half year at the beginning of the period for the next 6 years, discounted back to the present at 17.61 percent per year, compounded semiannually.
2. An Athlete is paid a lump sum of $11967000 three years from now as part of a settlement. If the relevant discount rate is 9 percent, what is the present value of this liability?
3. You plan to buy a house in 12 years. You want to save money for a down payment on the new house. You are able to place $118 every month at the end of the month into a savings account at an annual rate of 7.10 percent, compounded monthly. How much money will be in the account after you made the last payment?