1. You just won the lottery! As your prize you will receive $1,200 a month for 100 months (paid at the end of each month). If you can ear 3 percent on your money, what is this prize worth to you today (it's present value)?

2.What is the present value of $13,450 to be received four years from today, if the discount rate is a 5.20 percent annual rate?

3. Janet plans on saving $3,000 a year and expects to ear 8.5 percent annually. She plans to invest the money at the end of each year. How much will Janet have at the end of twenty-five years if she earns what she expects?

4. You are considering an annuity which costs $100,000 today. the annuity pays $6,000 a year at the Beginning of each year. The rate of return is 4.5 percent. How many years of annuity payments will you receive?