1. Anthony Walker is planning to invest $27,000 today in a mutual fund that will provide a return of 12 percent each year. What will be the value of the investment in 10 years? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.)

Value of investment after 10 years $: __________________

2. Your bank pays 6.00 percent annual interest compounded semiannually on your savings account. You dont expect to add to the current balance of $2,100 over the next four years. How much money can you expect to have at the end of this period? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.)

Value of investment after 4 years: $___________

3. Find the future value of a five-year $113,000 investment that pays 10.00 percent and that has the following compounding periods: Value of investment after 5-years:

a. Quertely b. Monthy c. Daily d. Continous

4. Ruth Lewis has been offered a future payment of $870 two years from now. If she can earn an annual rate of 8.50 percent, compounded daily, on her investment, what should she pay for this investment today? Amount to be invested today: $_________________

5.Laura plans to invest some money so that she has $4,600 at the end of three years. Determine how much should she invest today given the following choices:

a. 4.2 percent compounded daily. Amount required to be invested: $___________ b. 4.9 percent compounded monthly. Amount required to be invested: $___________ c. 5.2 percent compounded quarterly Amount required to be invested: $___________ d. 5.4 percent compounded annually. Amount required to be invested: $___________