1. An investment banker decides to invest his year-end bonus each year into a mutual fund for future use. He is able to earn 12.00% per year on average on his mutual fund. If he projects the following cash flows for the next four years, what is the future value of his account at the end of the fourth year? Answer Format: Currency: Round to: 2 decimal places.

YEAR 1 2 3 4

Bonus $20,000.00 $30,000.00 $35,000.00 $40,000.00

2.

A real estate investment has the following expected cash flows:

	Year	Cash Flows
	1	$12,521.00
	2	$28,400.00
	3	$46,367.00
	4	$42,173.00
	5	$44,893.00

The discount rate is 9.00 percent per year. What is the investment's present value? Answer Format: Currency: Round to: 2 decimal places.

3. Today is your 20th birthday. A trust fund was recently set up for you that will pay $159,300.00 in one year when you turn 21, $170,800.00 when you turn 25, and $219,800.00 when you turn 30. If the bank is willing to lend money to you at a 9.00% annual interest rate, what is the most you could spend this year? (Assume that the bank will loan you the full PV of your trust.)

Answer Format: Currency: Round to 2 decimal places.

4. A new start-up company promises to pay an investor each quarter for the next two years. The company will pay $22,575.00 per quarter for the first four quarters, and then $26,925.00 per quarter for the following four quarters. If the investor wants an 8.92% APR return with quarterly compounding, what is the value of the investment opportunity today?

Answer Format: Currency: Round to: 2 decimal places.