Tolerance: Be careful with rounding and do not round until you arrive at the final answer. Answer tolerance is 1 at the last digit based on the decimal place accuracy required by that question. For example, if a question asks you to round to the nearest cent (two decimal places) and the correct is $1,235.06, answers within 0.01 ($1,235.05 to $1,235.07) will count as correct. As another example, if a question asks you to round a percent answer to one decimal place and the correct answer is 4.6%, answers within 0.1% (4.5% to 4.7%) will count as correct.

13 and 14

Suppose you make the following deposits into an account earning 1.7%: $14,000 today followed by $3,000 each year for the next 7 years (so the last cash flow is at year 7). How much will you have in the account after 13 years? Round to the nearest dollar.

An asset is projected to generate 12 annual cash flows of $7,000 starting 5 years from today. If the discount rate is 11%, how much is this asset worth today? Round to the nearest dollar.