1. For $1,000 Laura Croft can purchase a 5-year ordinary annuity which will pay her a yearly payment of $263.80 for 5 years. What is the annual interest rate implicit in this investment?

2.Nathan Drake is considering borrowing $100,000 for 30 years at a compound annual interest rate of 9% p.a. The loan agreement calls for 30 equal annual payments, to be paid at the end of each of the next 30 years. What is the annual payment that will fully amortize Nathans loan?

3.Cloud Strife is going to place $12,500 into a certificate of deposit (CD) at a 6% annual rate (compounded annually) with a maturity of 30 months. How much money will Cloud receive when the CD matures?

4. Clementine and Lee expect to deposit the following cash flows at the end of years 1 through 5, $1,000; $4,000; $9,000; $5,000; and $2,000 respectively. Alternatively, they could deposit a single amount today and have the same amount in your account at the end of year 5. How large does the single deposit need to be today if Clementine and Lee can earn 10% compounded annually on their account?