1.You have just been notified that you will receive $7,250 a year for the next 17 years from an inherited trust. If the interest rate is 9 percent, how much should you be willing to accept today in exchange for the annual payments? (Enter your answer as a positive number rounded to 2 decimal places.)

2.You have just been notified that you will receive $7,250 a year for the next 17 years from an inherited trust. If the interest rate is 9 percent, how much should you be willing to accept today in exchange for the annual payments? (Enter your answer as a positive number rounded to 2 decimal places.)

3.Larry Davis borrows $88,000 at 12 percent interest toward the purchase of a home. His mortgage is for 30 years.

a. If Larry decides to make annual payments, how much will they be? (Enter your answer as a positive number rounded to 2 decimal places.)

b. How much interest will he pay over the life of the loan? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)