1. By the time you retire you have saved $875,000. You are contemplating putting the money into an annuity that makes monthly payments. What will be your payment if the interest rate is set at 3.85% APR and the annuity makes monthly payments for the next 30 years? 2. You would like to invest money into an annuity so that when you retire you will receive a monthly payment. You plan to retire when you turn 75. You hope to live until you turn 100. Given an interest rate of 3.25% APR, how much money will your monthly payment be if at age 75 you invested $1,250,000? 3. You receive a settlement that pays $2,000,000 today, or you could receive a PMT each year for the next 20 years. If your assumed interest rate is 5% APR (meaning you could invest the money somewhere else for 5%) what does the annual payment have to be in order to be same as receiving the $2,000,000 today? I 4. You borrow money from a bank to purchase a tractor. You borrow $125,000 for 6 years, making annual payments at an interest rate of 3.75% APR. What is your annual payment? 5. You borrow money to buy a car. You borrow $30,000 for 5 years, making monthly payments at an interest rate of 4.55% APR. What is your monthly payment? 6. By the time you retire you would like to have $1,000,000 saved up at age 70. You are currently 20. How much money do you need to save monthly starting now in order to reach your goal, given an interest rate of 4% APR? 7. What is the PMT on a loan for $4500 paid annually at 3.85% APR for 5 years? 8. What is the PMT on a loan for $250,000 paid monthly at 5.75% APR for 25 years