1. Calculate the present value, discounted at 10%, of receiving $500 a year for the next 10 years, starting a year from now.
2. You have applied for a home mortgage of $75,000 to finance the purchase of a home for 30 years. Assuming that the payments are annual and the interest rate is 14%, what is your annual payment?
3. If you need $6,000 five years from now, how much of a deposit must you make in your savings account each year, assuming an 8% annual interest rate?