You have been offered the opportunity to invest in a project that will pay $1,678 per year at the end of years one through three and $14,075 per year at the end of years four and five. If the appropriate discount rate is 5.8 percent per year, what is the present value of this cash flow pattern?

Round the answer to two decimal places.

4. Large-cap stocks had the nominal rates of return of 11.91 percent. The rate of inflation during the last year was 2.44 percent. What is the real rate of return for large-cap stocks?

Round the answer to two decimal places in percentage form.

5. You are going to save money for your son’s education. You have decided to place $2,555 every half year at the end of the period into a saving account earning 10.03 percent per year, compounded semi-annually for the next 13 years. How much money will be in the account at the end of that time period?

Round the answer to two decimal places.