Lee Childs is negotiating a contract to do some work for Haas Corp.

a$.$ Hass proposes to pay Lee $$10,000$ at the end of each of the next three years. If Lee discounts

these payments at $8\%,$ what is the contract worth to him today?

$N=3$

$\frac{1}{Y}=8\%$

$PU=$

$PMT=10,000$

$FU=0$

b$.$ If the $$10,000$ payments are made at the end of each of the third, fourth and fifth years instead,

and no payments will be made prior to that time, what is the contract worth to Lee today if the

interest rate is $8\%?$