1) Samantha just won a settlement with an insurance company, which entitles her to receive payments of $20,000 at the beginning of each year for the next 20 years. Her financial advisor recommended to her that she consider accepting a lump-sum payment now, using a discount rate of 7%. What is the amount that she should accept in this scenario?

Identify the following variables: N, I/Y, PV, PMT, FV

2) Omar wants to make a gift of $10,000 in todays dollars to his parents at the end of each of the next 10 years. If the annual rate of return is 8% and inflation is 3%, what is the value of the funds he must have in hand today to meet this need for the 10-year period?

Identify the following variables: N, I/Y, PV, PMT, FV

3 )Jim took out a 30 year, $200,000 mortgage on his home with an annual interest rate of 5.5%, compounded monthly. What will Jims monthly payments be?

Identify the following variables: N, I/Y, PV, PMT, FV