Question: 1 . Would you rather receive $ 1 , 0 0 0 a year for 1 0 years or $ 8 0 0 a year

1.Would you rather receive $1,000 a year for 10 years or $800 a year for 15 years if the interest rate is
5%? What if the interest rate is 20%? Show calculations to demonstrate your answer.
2. A property will provide $10,000 per year forever. If its value is $125,000, what must be the discount
rate?
3.What is the present value of a 3-year annuity of $100 if the discount rate is 6%?

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