1. A homeowner has a tenyear home-improvement loan for $36,875. What are the annual payments required by the loan if the annual rate of interest is 10 percent? 2. An investment offers $10,000 at the end of each year for ten years. (a) If you can earn 10 percent annually, what is this investment worth today? (b) If you do not spend the annual payment but invest it at 10 percent, how much will you have after the ten years have lapsed? 3. A firm currently earns $1.00 per share. A financial analyst believes that earnings will grow annually at the rate of 10 percent for five years and then decline to 5 percent. What are the expected earnings after ten years? 4. Worker A annually invests $1,000 in an IRA for nine years (ages 27 through 35) and never makes another contribution. Worker B annually invests $1,000 in an IRA for thirty years (ages 36 through 65). Which worker will have more in his or her account when he or she retires if they both earn 8 percent on their investments? 5. EEM, INC has a $1,000,000 debt outstanding that is due after 15 years. The contract required that after five years, the firm must set aside annually an amount so the debt is retired in full at maturity. If EEM can earn 8 percent on invested funds, how much must the company set aside each year? 6. A firm has a $1,000,000 debt (e.g., a bond) outstanding that matures after 10 years. The sinking fund requires the firm to set aside annually an amount so the debt may be retired at maturity. If the firm can earn 10% annually on these funds, how much must it invest annually to meet the sinking fund