1. You are offered an annuity that will pay $7,000 per year for 7 years (the first payment will be made today). If you feel that the appropriate discount rate is 7%, what is the annuity worth to you today?

2. If you deposit $15,000 a year for 12 years (each deposit is made at the beginning of each year) in an account that pays an annual interest rate of 10%, what will your account be worth at the end of 12 years?

3. You plan to accumulate $400,000 over a period of 10 years by making equal annual deposits in an account that pays an annual interest rate of 5% (assume all payments will occur at the beginning of each year). What amount must you deposit each year to reach your goal?

4. If you invest $11,100 per year for 20 years (all payments made at the beginning of each year), you will have accumulated $295,500 at the end of the period. What annual rate of return is the investment offering?

5. You are valuing an investment that will pay you $10,000 the first year, $12,000 the second year, $14,000 the third year, $16,000 the fourth year, $20,000 the fifth year, and $25,000 the sixth year (all payments are at the end of each year). What is the value of the investment to you today if the appropriate annual discount rate is 15%?