1. What interest rate (the nearest percent) must you earn on a $150,000 lump sum investment today so that you will have $525.000 after 12 years?

2. Tom won the Loterry that will pay him $200,000 at the end of each of the next twenty years. Express financial has offered to purchase the payment stream for $ 2,718.000, what interest rate (to the nearest percent) was used by express to determine the amount of the payment.

3.... on Jan 2 2014 xyz Corp wishes to issue $4,000,000 of its 8%, 10 year bonds... the bonds pay interest annually on Jan 1 , the current market rate on such bonds is 10% PV of 1 at 8% for 10 periods 0.4632 PV of 1 at 10% for 10 periods 0.3855 PV of ordinary annuity at 8% for 10 periods 6.7101 PV of ordinary annuity at 10% for 10 periods 6.1446

a. How much will they receive from the sale of these bonds( show calculation))

b. Where the bonds sold at discount or premium?

4. How much must be invested today to receive $30,000 for 10 years if the first $30,000 is received today and the rate is 8%