1) Next year you will begin receiving $265 dollars per year in perpetuity from your grandparents family trust fund (first payment is exactly 1 year from today) What is the present value today of these future cash flows if you discount them at 6.6%. Answer to 2 decimals point.

2) Bank A charges 9.1% APR on auto loans with monthly compounding. What is the EAR? Answer in% form with 3 decimals.

3) What is PV of $533 per year for 8 years if the required return is 8.5% (assume the $553 payments come at the end of each of the next 8 years)? Answer to 2 decimal places.

4) What is the present value of a $1000 future amount received in 26 years if the appropriate discount rate is 10.8% APR? Answer to 2 decimal places.

5) Your firm is concerned about a financial obligation for $17 million coming due in 9 years. If your firm could earn 6.5% APR on an investment, how much would your firm have to invest today to fund (finance) the future $17 million obligation? Assume annual compounding. Answer in units of millions of dollars and to 2 decimal points.

6) What is the FV at the end of year 9 of $1,581 put into an account today if the return is 5.6% per year? Answer to 2 decimals.

7) IF you have just taken out a 30- year mortgage on your new home for $126,142. This mortgage is to be repaid in 360 equal monthly installments. if the stated (nominal) annual interest rate is 15.4%, what is the amount of each of the monthly installments?

8) A bank is paying 7.5% APR on a CD. (note: this convention when there are no periodic payments is to assume annual compounding, unless stated otherwise. THus this is annual compounding) if you put $2,643 into an account, how much will the account be worth in 5 years? Answer to 2 decimals.