1. You won a lottery that will make equal payments of $2,000 at the end of each year for the next eight years.

If the annual interest rate stays constant at 7%, what is the value of these payments in todays dollars? (Note: Round your answer to the nearest whole dollar.)

$10,152

$14,929

$11,943

$12,779

2. You found out that now you are going to receive payments of $8,500 for the next 14 years. You will receive these payments at the beginning of each year. The annual interest rate will remain constant at 11%.

What is the present value of these payments? (Note: Round your answer to the nearest whole dollar.)

$52,699

$59,346

$88,930

$65,874

3. Eileen had a high monthly food bill before she decided to cook at home every day in order to reduce her expenses. She starts to save $800 every year and plans to renovate her kitchen. She deposits the money in her savings account at the end of each year and earns 10% annual interest. Eileens savings are an example of an annuity.

If Eileen decides to renovate her kitchen, how much would she have in her savings account at the end of 2 years, rounded to the nearest whole dollar?

$2,268

$1,680

$1,428

$1,848

4. If Eileen deposits the money at the beginning of every year and everything else remains the same, she will save by the end of 2 years?