1. If a five-year regular annuity has a present value of $1,000, and if the interest rate is 10 per cent, what is the amount of each annuity payment? 2. Assume that you will receive $2,000 a year in Years 1 through 5, $3,000 a year in Years 6 through 8, and $4,000 in Year 9, with all cash flows to be received at the end of the year. If you require a 14 per cent rate of return, what is the present value of these cash flows? 3. If $100 is placed in an account that earns a simple 4 per cent, compounded quarterly, what will it be worth in five years? 4. Gomez Electronics needs to arrange financing for its expansion program. Bank A offers to lend Gomez the required funds on a loan where interest must be paid monthly, and the quoted rate is 8 per cent. Bank B will charge 9 per cent, with interest due at the end of the year. What is the difference in the effective annual rates charged by the two banks