$1$

$)$

$$Please answer the following questions:

$$ a

$)$

$$What is the present value today of a

$2$

$0$

$-$

year annuity of $

$1$

$,$

$0$

$0$

$0$

$$per payment if the discount rate is

$1$

$0$

$\%$

$$and the first payment is

$1$

$$year from now?

$$ b

$)$

$$What is the present value today of a

$2$

$0$

$-$

year growing annuity if first payment is $

$1$

$,$

$0$

$0$

$0$

$$and each successive payment grows at

$3$

$\%$

$?$

$$Assume the discount rate is

$1$

$0$

$\%$

$$and the first payment is

$1$

$$year from now?

$$ c

$)$

$$What is the present value today of a perpetuity if each payment is $

$1$

$,$

$0$

$0$

$0$

$?$

$$Assume the discount rate is

$1$

$0$

$\%$

$$and the first payment is

$1$

$$year from now?

$$ d

$)$

$$What is the present value today of a growing perpetuity if first payment is $

$1$

$,$

$0$

$0$

$0$

$$and each successive payment grows at

$3$

$\%$

$?$

$$Assume the discount rate is

$1$

$0$

$\%$

$$and the first payment is

$1$

$$year from now?

$$ e

$)$

$$What is the present value today of a

$1$

$5$

$-$

year annuity of $

$1$

$,$

$5$

$0$

$0$

$$per payment if the discount rate is

$1$

$0$

$\%$

$$and the first payment is

$1$

$0$

$$years from now?

$$ f

$)$

$$What is the present value today of a growing perpetuity if first payment is $

$5$

$0$

$0$

$$and each successive payment grows at

$2$

$\%$

$?$

$$Assume the discount rate is

$1$

$0$

$\%$

$$and the first payment is

$5$

$$years from now?