Use the table below to answer the following questions: Present Value of 1 Factor Present Value of an Annuity of 1 Factor Period 1/2 Yr Full-Yr 1/2 Yr Full-Yr 1 0.9535 0.9091 0.9535 0.9091 2 0.9091 0.8264 1.8626 1.7355 3 0.8668 0.7513 2.7293 2.4869 4 0.8264 0.6830 3.5558 3.1699 5 0.7880 0.6209 4.3438 3.7908 6 0.7513 0.5645 5.0951 4.3553 Assumption: Required annual effective rate (EPR) of return is 10%.

1) If an investment pays you $36,000 at the end of 3 years, what is its present value?

A. $32,063

B. $30,571

C. $29,843

D. $27,047

2) If an investment pays you $12,000 at the end of each year for 3 years, what is its present value?

A. $32,063

B. $27,047

C. $30,571

D. $29,843