1. You plan to receive $150 a month for all 4 years of college. At a discount rate of 7 percent, compounded weekly, what are these payments worth the first day of college (t=0)?

2. As a lottery prize you will receive $2K a month for 120 months. If you can earn 7 percent, compounded daily, what is this prize worth today (t=0)?

3. A company contributes $40 a week to your retirement. Assume you work for 20 years and the applicable discount rate is 4 percent, compounded weekly.

What is this employee benefit worth to you today (t=0)?

4. You purchase an annuity that will pay $6,000 annually for 20 years, with the first annuity payment made on purchase date.

What is the value of the annuity on the purchase date given a discount rate of 8 percent?

5. You own two annuities that will each pay $1000 a month for the next 18 years. One payment is received at the beginning of each month while the other is received at the end of each month.

At a discount rate of 6.25 percent, compounded monthly, what is the difference in the present values of these annuities?

6. What is the future value of $875 a year for seven years at an interest rate of 11.8 percent?

7. You invest $1,000 in an account that pays 5 percent simple interest. How much more could you have earned over a 15-year period if the interest had compounded annually?

8. An annuity costs $80K today, pays $3,800 a year, and earns a return of 4.4 percent. What is annuity period (solve for t)?

9. What is the annual percentage rate on a loan that charges interest of 1.75 percent per quarter?