1. A company has a pension plan that will require the firm to make monthly payments of $625,000 to retirees for the next 20 years. If the firm can invest at 6.00%, what is the present value of the future pension payments?

2.Its time to save for retirement. You plan to invest $300 per month for the next 40 years. If your retirement account earns an 8.25% return, how much will you have in the account at the end of 40 years?

3. You have decided to buy a house. You will be financing the purchase with a loan of $140,000. The interest rate on the loan is 4.5% and the maturity is 30 years. How much is the monthly loan payment?