Solve these various time value of money scenarios.
1. Suppose you invest a sum of $3,000 in an interest-bearing account at the rate of 10% per year. What will the investment be worth six years from now?
2. How much would you need to invest now to be able to withdraw $6,000 at the end of every year for the next 20 years? Assume a 12% interest rate.
3. Assume that you want to have $135,000 saved seven years from now. If you can invest your funds at an 8% interest rate, how much do you currently need to invest?
4. Your aunt Gracen plans to give you $3,500 at the end of every year for the next ten years. If you invest each of her yearly gifts at a 12% interest rate, how much will they be worth at the end of the ten-year period?
5. Suppose you would like to buy a small cabin in the mountains four years from now. You estimate that the property will cost $53,000 at that time. How much money would you need to invest each year in an interest-bearing account at the rate of 8% per year in order to accumulate the purchase price?