1. Assume you deposit $1,000 today in an account that pays 9% annual interest. How much will you have in 5 years?

2. A rich Aunt set up a trust fund that will pay you a $100,000 lump sum in 8 years. If the relevant interest rate is 12 % what is this trust fund worth today?

3. If you earn a 15 % interest rate, how much money would you have to invest now to have $1000 in 3 years? Hint: PV = [$1000/(1+r)t ]

4. If you earn a 10 % interest rate, how much money would you have to invest now to have $1000 in 3 years?