1. You just won a prize and will receive $1,000 today plus $1,000 one year from now. What is this prize worth to you today if you can earn 6.5 percent annually on your investments?

2. A generous benefactor invested money in a scholarship fund 18 years ago at an interest rate of 7 percent. Every year, the fund awards $35,000 in scholarships to worthy college students. How much did this benefactor deposit into the account initially? Assume all interest is paid out annually but the principal amount remains untouched

3. Even though you have no idea who you will marry, you are planning to have an elaborate wedding 4 years from now. The estimated cost of the wedding is $52,000 and you expect to earn 3.5 percent on your savings. How much do you need to save each month for this purpose assuming that you have no money saved as of today?