3.

a.What is the present value of $200,000 to be paid at the end of 10 years, assuming an 8% interest rate?

b.What is the present value of $20,000 per year for 10 years, assuming an 8% interest rate?

4.

a.What is the present value of $75,000 to be paid at the end of 10 years, assuming a 9% interest rate?

b.What is the present value of $7,500 per year for 10 years, assuming an 9% interest rate?