1. You want to borrow $1,000,000 from your bank to buy a business. The loan has an annual interest rate of 8% and calls for equal annual payments over 10 years (starting one year from now), after which the loan is paid back in full. What is the annual payment you have to make?

2. You just turned 20 years old and want to retire when you turn 65. You plan to put $4,400 every year into a ROTH IRA, a retirement account from which you can withdraw money after retirement without having to pay any taxes. You expect to earn a return of 8% on your investments every year. How much money can you expect to have at age 65 if you make your first annual deposit now and your last one on the day you turn 64?

3. You borrowed $500,000 at an interest rate of 3.1%, with constant annual payments of both principal and interest over 15 years. What is your annual payment?