1. Mr. Bill S. Preston, Esq., purchased a new house for $100,000. He paid $10,000 down and agreed to pay the rest over the next 25 years in 25 equal end-of-year payments plus 12 percent compound interest on the unpaid balance. What will these equal payments be?

The equal payments will be $_____.

2. What is the present value of the following annuities?

a. $1,600 a year for 10 years discounted back to the present at 9 percent.

b. $70 a year for 5 years discounted back to the present at 7 percent.

c. $300 a year for 12 years discounted back to the present at 13 percent.

d. $580 a year for 4 years discounted back to the present at 6 percent.

What is the present value of $1,600 a year for 10 years discounted back to the present at 9 percent?

_____.

What is the present value of $70 a year for 5 years discounted back to the present at 7 percent?

_____.

What is the present value of $300 a year for 12 years discounted back to the present at 13 percent?

_____.

What is the present value of $580 a year for 4 years discounted back to the present at 6 percent?

_____.