1. Calculate the present value of the annuity. (Round your answer to the nearest cent.)
$1500 monthly at 6.3% for 30 years.
2. Just before his first attempt at bungee jumping, John decides to buy a life insurance policy. His annual income at age 30 is $35,000, so he figures he should get enough insurance to provide his wife and new baby with that amount each year for the next 35 years. If the long-term interest rate is 6.1%, what is the present value of John's future annual earnings? (Round your answer to the nearest cent.) $
Rounding up to the next $50,000, how much life insurance should he buy? (Round your original answer to the nearest $50,000.) $
3. A MasterCard statement shows a balance of $530 at 13.2% compounded monthly. What monthly payment will pay off this debt in 1 year 9 months? (Round your answer to the nearest cent.) $