1. Perpetuities. What is the present value of a perpetuity of $80 per year if the discount rate is 11 percent. 2. Deposits Required. If you need $6,000 5 years from now, how much of a deposit must you...

1. Perpetuities. What is the present value of a perpetuity of $80 per year if the discount rate is 11 percent.

2. Deposits Required. If you need $6,000 5 years from now, how much of a deposit must you make in your savings account each year, assuming an 8 percent annual interest rate?