1)Your 30-year mortgage loan amount is $200,000. And the interest rate is 6% p.a. How much interest will you pay for the 3rd year?

2) You will make deposits of $1000 at the beginning of each year for 30 years in your investment account. After 40 years, you will immediately withdraw all money from the account to buy a retirement annuity for 20 years with equal annual payments (paid at year-end) from a life insurance company. If the annual rate of return over the entire period (75 years) is 5%, how much is the annual payment from the insurance company?

3) An asset will produce the following series of cash flow. At the end of the first two years, $2000 each year. At the end of each of the following three years, $5000. And, at the end of each of the following four years, $9000. If your required rate of return is 5%, how much is this asset worth to you?

4) Your account pays interest at a rate of 5 perfect per year and the interest is computed once a year. You deposit $2000 in the account today. If you are allowed to withdraw money at the end of the first and second year only, how much should you withdraw at the end of the first year to ensure that you have exactly $1000 in the account at the end of the second year?