PV of \$1 PV of Annuity of \$1 6% 8% 10% 6% 8% 10% 1 0.9434 0.9259 0.9091 1 0.9434 0.9259 0.9091 2 0.8900 0.8573 0.8264 2 1.8334 1.7833 1.7355 3 0.8396 0.7938 0.7513 3 2.6730 2.5771 2.4869 4 0.7921 0.7350 0.6830 4 3.4651 3.3121 3.1699 5 0.7473 0.6806 0.6209 5 4.2124 3.9927 3.7908 1 Choose one column in the PV of \$1 table; using your calculator, derive each PV factor using the formula. 2 Can you use the PV of \$1 to derive the PV of Annuity of \$1 for the same interest rate? (YES) 3 What is the present value of \$1,000 to be received at the end of... a.  1 year, discounted at 6%? b.  2 years, discounted at 6%? c.  3 years, discounted at 6%? d. PROVE your answers in a, b, and c. 4 What is the present value of an annuity of \$1,000 to be received a. at the end of 1 year, discounted at 6%? b. at the end of years 1 and 2, discounted at 6%? c. at the end of years 1, 2, and 3, discounted at 6%? d. PROVE your answers in items a, b, and c. 5 For question 3c above, write the problem as a FUTURE VALUE problem. 6 For question 4c, write the problem as a FUTURE VALUE problem.