1.If you put up $20,000 today in exchange for a 8.50 percent, 13-year annuity, what will the annual cash flow be?

2. You expect to receive $8,000 at graduation in two years. You plan on investing it at 10 percent until you have $92,000. How long will you wait from now? (Do not round your intermediate calculations.)

3. A 13-year annuity pays $1,300 per month, and payments are made at the end of each month. The interest rate is 6 percent compounded monthly for the first Six years and 3 percent compounded monthly thereafter. Required: What is the present value of the annuity?

4. Given an interest rate of 5.0 percent per year, what is the value at date t = 7 of a perpetual stream of $500 payments with the first payment at date t = 13?

5.What is the present value of $1,100 per year, at a discount rate of 9 percent, if the first payment is received 10 years from now and the last payment is received 27 years from now?