1. Suppose that starting one year from now you will receive $160 a year at the end of every year. If the discount rate is 9% what is this stream of cash flows worth today?
2. Money market mutual funds usually invest their money in a well-diversified portfolio of mortgages and corporate bonds.
3. On your first through fifth birthdays your parents placed $3,000 into your college fund (five total deposits of $3,000 each, starting from exactly one year after the date of birth). The account has earned an average of 5.0% per year until today, your twentieth birthday. How much money is in the account today?