1. Elizabeth Sweeney wants to accumulate 18,500 by the end of 12 years. If the annual interest rate is 6.10 percent, how much will she have to invest today to achieve her goal-
2. Tracy Chapman is saving to buy a house in five years time. She plans to put 20 percent down at that time and she believes that she will need $5,950 at that time. If Tracy can invest in a fund that pays 6.30 percent annually, how much should she invest today
3. Maria Addai has been offered a future payment of $26,000 two years from now. If she can earn 8.20 percent compounded annually on her investment, what should she pay for this investment today
4. You invest $250 into a mutual fund today that pays 7.0 percent interest. How long will it take to double your money?
5. Your finance text book sold 52,000 copies in its first year. The publishing company expects the sales to grow at a rate of 23.0 percent for the next three years, and by 13.0 percent in the fourth year. Calculate the total number of copies that the publisher expects to sell in year 3 and 4.
6. Find the present value of $4,900 under each of the following rates and periods
a. 8.9 percent compounded monthly for five years.
b. 6.6 percent compounded quarterly for eight years.
c. 4.3 percent compounded daily for four years.
d. 5.7 percent compounded continuously for three years.