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Suppose you will receive $14,000 in 9 months and another $14,000 in 22 months

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1. Suppose you will receive $14,000 in 9 months and another $14,000 in 22 months. If the discount rate is 7% per annum (compounding monthly) for the first 12 months, and 12% per annum (compounding monthly) for the next 10 months, what single amount received today would be equal to the two proposed payments? (answer to the nearest whole dollar; don't include the $ sign or commas) Answer:

2. You are given the equation below. FV = (1 + i)10 – 1)(1+i) () Which of the following statements is CORRECT? Select one: A. The equation will indicate the future value of an annuity of 10 payments, immediately after the 10th payment B. The equation will indicate the future value of an annuity due of 10 payments at the end of the 10th period. C. The equation will work where I make 10 annual payments commencing at the end of the first year if I wish to know the value at the beginning of the 10th year. D. None of the above are correct.