present value of cash flows

[rbcc]

Hi i have a quick question

given the following spot rates (the interest rate at the present year for funds invested in the present year) 5% in year 1 and 5.4% in year 2,
calculate the present value of the following cash flows

2000 in year 1
1500 in year 2

so 2000/1.05 +1500/(1.054)(1.05)

or would it be

2000/1.05 +1500/(1.054)^2

thanks
rbcc

 

[rbcc]

Do you mean spot rates of 5% for a term of 1 year and 5.4% for a term of 2 years?

i think its this one. The spot rates are supposed to be the term structure