1. Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2016, a sculpture was sold at auction for a price of $10,318,500. Unfortunately for the previous owner, he had purchased it in 2012 at a price of $12,379,500. What was his annual rate of return on this sculpture?

2. You expect to receive $16,000 at graduation in two years. You plan on investing it at 12 percent until you have $104,000. How long will you wait from now?

3.

You're trying to save to buy a new $180,000 Ferrari. You have $39,000 today that can be invested at your bank. The bank pays 5.0 percent annual interest on its accounts. How long will it be before you have enough to buy the car?

4. Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $6,600, $11,600, and $17,800 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determined that a rate of return of 13 percent is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.?