2 4 .6 18 5) What is the present value of 5 annual payments of $10,000.00 and another 5 annual payments of $2,500 @ 5% 3 6) The present value of saving $2,000.00 a year, at-5%, for 5 years is greater than saving $1,500.00 a year, at 5%, for 10 years. s 7) if I want to have $2,000,000, in 45 years, I need to save $2,500 each year for 45 years, at 7%. 7 8) Which stream of future income has a higher present value, given a rate of 3.5%? Stream A 5,000 4,000 3,000 2,000 1,000 Stream B 1,000 2,000 3,000 4,000 5,000 20 Stream C 3,000 3,000 3,000 3,000 3,000 21 22 9) Which stream of future income has a higher present value, given a rate of 10%? 23 Stream A 6 cash flows of $1,100 24 Stream B 7 cash flows of $1,000 Stream C 8 cash flows of $900. 27 10) If your home is worth $300,000.00 today and it is appreciating at a rate of 2.5% per year, what will the value be in 25 years? 28 A $667,534.19 B $556,183.23 C$498,126.84 25 26 29 30