1. Investment X offers to pay you $3,400 per year for nine years, wheras Investment Y offers to pay you $5,200 per year for fiver years. Which of these cash flow streams has the higher present value if the discount rate is 6 percent? If the discount rate is 22 percent?
2. Your coin collection contains fifty 1952 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2063, assuming they appreciate at an annual rate of 4.3 percent?