7. You just won a lottery that will pay you $2,500 a year for twenty years. The first payment will be sent to you at the end of the first year. If you can earn 8 percent on your money, what is your whole lottery worth to you today? How does the answer change if the first payment starts today?

8. A security will pay you $100 annually for ever and the first payment will starts in a year. If you require an 8% return rate from this investment, what is the maximum amount you should pay to purchase it today?

9. You just purchased a BMW of $45,000 with no money down and a 4.8% APR 5 year car loan. How much is your monthly payment if you start to pay after one month?