1. Bradley won a lottery that would pay her $44,000 in 2 years and $9,400 in 5 years. The lottery company had another option where she could get an upfront amount now and another $8,300 in 4 years.

Calculate the upfront amount that she would receive now from the second option, assuming that money is worth 2.00% compounded semi-annually.

2. A bank charges Cash Co. an interest rate of 10% compounded quarterly on its line of credit. If the effective interest rate were to increase by 2.30%, calculate the new interest rate compounded quarterly.

3.Shawn invested $54,000.00 into a fund which earns interest of 9.00% compounded monthly. How long will it take for the fund to grow to a value of $77,516.86.

____ Years

4. What quarterly compounding nominal interest rate is earned on an investment that doubles in 8.5 years?

5. What nominal interest rate compounded semi-annually is equivalent to 3.44% compounded quarterly?