1. Finding PMT, N, and I A worker wants to have $1,000,000 by the time he retires. The worker puts $10,000 into a savings account at the end of every year that earns 5% compounded annually. How many years of working will it take until the worker can retire? A worker wants to have $2,000,000 by the time they retire. The worker plans on working 40 years until he retires. What yearly payment must be put into a savings account at the end of each year if the savings account yields 8% annually? A student beginning their career has $10,000 in savings. They plan to retire in 45 years while investing $6,000 every year at the end of the year compounded annually in the hopes of having S1,000,000 at retirement. What is the required rate of interest to achieve this goal? 2. Perpetuities A lottery winner wins a S50,000 year prize ends upon the death of the winner. However, the lottery winner, who is a scientist, discovers a drug that makes him immortal, meaning the payments will continue to perpetuity. What is the present value of the lottery prize if the discount rate is 10%? 3. Uneven Cash Flows Calculate the net present value of the following cash flows with an annual interest rate of 2%. Year 0: Year 1: ear Year 3: Year 4 -300 +200 +200 +700 -100 4. Future Value of an Uneven Cash Flow Stream Calculate the future value of the following cash flows with an annual interest rate of 3%. Year 0: Year 1: Year 2: Year 3: Year 4 300 50 100 500