1. An annuity is a guaranteed fixed income investment product that allows the investor to purchase the product for a lump sum amount today and then start receiving a guaranteed annual payout each year for as long as the person remains alive. Suppose you wish to purchase an annuity for retirement. You just turned 30 years old and do not qualify to receive any payout from the annuity until your 65^th birthday(34 years). The insurance company offering you this product assumes that you will live until youre 86 years old (they will plan to pay out on this annuity 22 times). The structure of the annuity is that you will receive $275,000 a year until you pass away. If the discount rate is 5.95%, how much will this annuity cost you today?

3.Suppose you want to buy a 2018 Ford F150, with an asking price of $45,675. You are planning on trading in your minivan for $6,500 and you have saved $4,000 to put down but will need to finance the rest of the truck. The bank is willing to provide you a 6-year loan at a rate of 4.5%. Given this information, what will be your monthly truck payment?