I need help. Please show work when possible. I am trying to learn not just get answers.

Question 1

An investment required an initial cash outlay of $1,000, and produced an annuity of $500 for each of the next two years. The discount rate is 10 percent. How much must the residual value of the investment be at the end of the two years for the investment to be worth the required $1,000?

		$160.06
		$454.55
		$867.77
		$1,000

Question 2

You just now financed a house, and the mortgage is a 10-year, $200,000 mortgage, with a single payment made at the end of each year. The interest rate is 5%, which by my calculations is a payment at the end of each year of $25,900 (=$200,000/7.722). Suppose you immediately, having made no payments on the original mortgage, receive an offer to refinance at 4%. Suppose you can escape the 5% mortgage and accept the 4% mortgage. By how much will the payments fall if you accept the offer at 4%? Select the closest answer!

		$1,000
		$1,240
		$3,190
		$2,000

Question 3

A long lost relative has identified you and promised to give you $1,000 a year at the end of each of the next four years if you earn Bs or better in all of your courses each year. Using a discount rate of 6%, which of the following is correct for determining the present value of the gift?

PV = $1,000