1. Alan Smith will receive $88,000 on 5 years from now, from a trust fund established by his father. Assuming the appropriate interest rate for discounting is 12% (compounded semiannually), what is the present value of this amount today?

2. The Splish are planning for a retirement home. They estimate they will need $208,000 4 years from now to purchase this home. Assuming an interest rate of 12%, what amount must be deposited at the end of each of the 4 years to fund the home price?

3. James Spear invested $12,000 today in a fund that earns 8% compounded annually. To what amount will the investment grow in 3 years? To what amount would the investment grow in 3 years if the fund earns 8% annual interest compounded semiannually? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) Investment at 8% annual interest

Investment at 8% annual interest, compounded semiannually

4. John Newman will invest $10,310 today in a fund that earns 5% annual interest.

How many years will it take for the fund to grow to $15,233?

5. Adams Madison needs $294,200 in 10 years

How much must he invest at the end of each year, at 15% interest, to meet his needs? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) 6. Leon Tylers VISA balance is $846.03. He may pay it off in 12 equal end-of-month payments of $80 each. What interest rate is Leon paying?

7. Swifty Inc. issues $2,400,000 of 7% bonds due in 12 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 11%

What amount will Swifty receive when it issues the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.)