### Present and future value of single sum, perpetuity, and present value of annuity

1. Present value of single sum problem You are going to be given $100,000 in 12 years. Assuming an inflation rate of 3.5%, what is the present value of this amount? 2. Perpetuity problem What is the value of a perpetuity with an annual payment of $100 and a discount rate of 6%? 3. Future value of single sum problem