1. Find the future value of $20,000 invested now after six years if the annual interest rate is 9 percent.

a. What would be the future value if the interest rate is a simple interest rate?

b. What would be the future value if the interest rate is a compound interest rate?

2. Determine the future values if $3,000 is invested in each of the following situations:

a. 5 percent for 12 years

b. 7 percent for eight years

c. 9 percent for three years

3. Find the present value of $9,000 to be received one year from now assuming a 4 percent annual discount interest rate. Also calculate the present value if the $9,000 is received after two years

4. Determine the present values if $5,000 is received in the future (i.e., at the end of each indicated time period) in each of the following situations:

a. 4 percent for ten years

b. 6 percent for seven years

c. 8 percent for four years

5. Determine the present value if $15,000 is to be received at the end of eight years and the discount rate is 11 percent. How would your answer change if you had to wait six years to receive the $15,000?