1. You are offered the choice between two investments. The first investment, Investment A, pays $2500 per year for ten years. The second, Investment B, pays $5000 per year for five years. Which investment has a higher present value if the discount rate is 5%? How about if the discount rate is 25%?
2. Your full-service brokerage firm charges $165 per stock trade.
How much money do you receive after selling 310 shares of International Business Machines (IBM), which trades at $85.37?(Round your answer to 2 decimal places.)