1. Toshis Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $25,000 per year forever. If your required rate of return on this investment is 7%, how much the most are you willing to pay for the policy? Round to the nearest cent. Do not include any unit (If your answer is $111.11, then type 111.11 without $ sign.)

2.You are starting a medical school today. Becoming a doctor is your lifetime dream, so you started saving money when you were little. You now have $200,000 in your account, and you are going to withdraw annually starting today next four years. If you can earn 3 percent interest on the account, how much a year can you withdraw? Round to the nearest cent. Do not include any unit (If your answer is $111.11, then type 111.11 without $ sign.)

3. How much are you willing to pay for an investment that promises to pay $10,000 a year in perpetuity if your required rate of return on this investment is 10 percent and the first $10,000 payment starts in 10 years? Round to the nearest cent. Do not include any unit (If your answer is $111.11, then type 111.11 without $ sign.)