1.A sport organization has a commitment from a sponsor for a $17,000 payment in three years. What is the present value of that money if it is

1.     A sport organization has a commitment from a sponsor for a $17,000 payment in three years. What is the present value of that money if it is discounted at (a) 3%, (b) 5%, and (c) 9%?

2.     An athlete signs a five-year endorsement deal with a prominent sponsor. Under this deal, the athlete will receive $5,000 each year for the first three years and $6,500 each year for the final two years. What is the present value of the total deal if the payments are discounted 6%?

3.     If an investor commits $4,500 to an IRA each year for 30 years and receives 6% interest, what will her total investment be worth at the end of the 30 years?

4.     A bank offers customers the option of receiving interest compounded quarterly, semi-annually, or annually. If the rate of interest is the same, which is the best option for the customer?

5.     What is the difference between $10,000 invested for ten years at 3% interest, compounded yearly, and at 8% interest, compounded semi-annually?

6.     What is an LLC and an LLP? Why have they become more popular business entities over the past ten years? What concerns should an investor investigate before forming an LLC or LLP?

7.     Calculate the straight-line and sum-of-years-digits depreciation schedules for a $450 video camera that will have a salvage value of $50 after five years of use.

8.     For a fitness center purchasing a $3,000 photocopier expected to produce 30,000 copies, calculate the units of production depreciation schedule if the following number of copies are expected to be made each year