1 ) The continuously compounded interest rate is 10%.

a. You invest $1,050 at this rate. What is the investment worth after ten years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Future value $

b. What is the PV of $5.5 million to be received in thirteen years? (Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.) Present value $ million

c. What is the PV of a continuous stream of cash flows, amounting to $2,050 per year, starting immediately and continuing for 20 years? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) Present value $

2 ) Mike Polanski is 30 years of age and his salary next year will be $41,400. Mike forecasts that his salary will increase at a steady rate of 5% per annum until his retirement at age 60.

a. If the discount rate is 10.5%, what is the PV of these future salary payments? (Do not round intermediate calculations.Round your answer to 2 decimal places.) Present value $

b. If Mike saves 5% of his salary each year and invests these savings at an interest rate of 10.5%, how much will he have saved by age 60? (Do not round intermediate calculations.Round your answer to 2 decimal places.) Future value $

c. If Mike plans to spend these accumulated savings in even amounts each year over the subsequent 20 years, how much can he spend each year starting with his 61st birthday? (Do not round intermediate calculations.Round your answer to 2 decimal places.) Present value $