1. An investment pays $400 in one year, $600 dollars in two years, and X amount of dollars in 3 years. The total present value of all the cash flows (including X) is equal to $1,500. If i is 6%, what is X? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
2. Shippon Co. signed a contract that will entitle them to $7,000 every six months for the next eight years. They want their money now. A bank has agreed to buy the contract with a discount rate of 4%, compounded semiannually. How much will the bank be willing to pay Shippon currently if Shippon assigns its rights to receive payments under the contract to the bank?
(Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))