1) An annuity pays $13 per year for 41 years. What is the future value (FV) of this annuity at the end of that 41 years given that the discount rate is 7%?

2) Ally wishes to leave a provision in her will that $9,000 will be paid annually in perpetuity to a local charity. How much must she provide in her will for this perpetuity if the interest rate is 7%?

3) An annuity is set up that will pay $1,200 per year for eight years. What is the present value (PV) of this annuity given that the discount rate is 8%?

4) You are given two choices of investments, Investment A and Investment B. Both investments have the same future cash flows. Investment A has a discount rate of 4%, and Investment B has a discount rate of 5%. Which of the following is true?