1. You want to spend $50,000 a year for 15 years once you retire in 20 years. If the interest rate is 8 % per year, how much must you save each year until retirement to meet your retirement goal?

2. You are going to invest $2,000 each year starting today and continuing through year 7. If you will withdraw the proceeds at the end of year 11, how much will you get? Assume the interest rate is 12% per year, compounded annually.

3. What is the present value of a $1,200 per year annuity that begins at the end of year 4 and ends with a payment at the end of year 9? The appropriate discount rate is 8%.