You are offered an annuity that will pay you $200,000 once per year, at the end of the year, for 25 years. the first payment will arrive one year from now. the last payment will arrive twenty-five years from now. suppose your annual discount rate is i=17.25%, how much are you willing to pay for this annuity? (hint: this is the same as the present value of an annuity.) 11. an investment gives you a 18.35% nominal return over 1 year. there was 2.5% inflation over that year. what was your exact real return? (don’t use the fisher equation.)

Problem 1. the following balance sheet contains errors. lopez services,inc. balance sheet for the year ended december 31, 20-- assets liabilities current assets: current liabilities: cash $ 6,170 accounts receivable $ 9,000 accounts payable 8,500 accum. depr- building 13,525 supplies 1,590 accum. depr- equipment 6,340 prepaid insurance 345 net income 12,500 land 25,000 total current assets $ 42,105 total liabilities $ 40,865 stockholders equity property, plant, and equipment: wages payable $ 500 building $ 45,500 retained earnings 10,000 equipment 28,250 total stockholders' equity $ 64,490 total property, plant, and equipment 73,750 total assets $115,855 total liabilities and stockholders' equity $115,855 (a) list the errors in the balance sheet above and (b) prepare a corrected balance sheet using ms excel