Problem:

A long lost elderly relative has willed you (and your heirs after you are gone) to receive $20,000 a year forever in the future. If you are expected to receive the first of these payments 7 years from now, how much is this inheritance worth today, given an interest rate of 3 percent?

You currently have $ in a savings account. You plan to contribute $2,500 to this account each year for 10 years, starting a year from today. How much will you have in the account 10 years from now, at an interest rate of 8 percent?

You borrow $15,000 as an interest only loan, at an interest rate of 6 percent, over 10 years. What is the total amount of interest you will pay on this loan over its life? Give details comprehensively and also show all workings.